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Matters eRising by Olusegun Oruame
Globacom’s decision to appoint Ahmad Farroukh as CEO, following the loss of 43 million subscribers due to a SIM re-registration audit, comes as no surprise to many industry insiders. Farroukh has a proven track record of implementing effective customer acquisition strategies, having successfully driven growth for MTN in both Ghana and Nigeria. Expectations are high that he can replicate this success at Globacom.
A Struggling Era for Nigeria’s Indigenous Telecom Giant
Globacom, Nigeria’s indigenous telecom operator, suffered a staggering 69.2% decline in its customer base in the third quarter of 2024, marking the largest subscriber loss among the country’s mobile network operators. This sharp decline has sparked concern about the company’s trajectory, with some viewing it as part of a long-term trend of weak management. But this may not be exactly true. All networks are facing challenges marked by Nigeria’s haunting economy and galloping inflation.
Once a game-changer in the telecom sector, Globacom’s early successes included the introduction of per-second billing (PSB). A move that disrupted the market when competitors like MTN and Airtel were still debating its feasibility. The company also played a pivotal role in lowering mobile data costs, setting new industry standards. However, over the past decade, Globacom’s performance appears to be struggling.
Leadership Challenges
Industry observers have pointed to Globacom’s lack of a structured management team, which they believe has hindered the company’s potential. But the company’s does not think so. Critics may bite without figures but Glo’s financial position is robust and upswing, a company’s official revealed. The company’s operations in Ghana collapsed amid allegations of poor labour practices and regulatory breaches. In Nigeria, Globacom has faced criticism for inflating subscriber numbers, evading regulatory requirements, and withholding financial transparency. These issues came to a head in September 2024 when an audit by the Nigerian Communications Commission (NCC) exposed a massive drop in active subscribers—from 62.2 million in March to just 19.15 million.
The NCC attributed this loss to the deactivation of SIM cards not linked to National Identification Numbers (NINs), a mandatory verification process completed in September. While all mobile operators were impacted by this requirement, Globacom and 9mobile were hit the hardest. Moreover, a new NCC regulation counts subscribers inactive for 90 days as non-active, revealing that around 40 million Globacom subscribers had not used the network for three months or more.
Persons familiar with Globacom say its weakness is inability to engage and deliver acceptable perception on its challenges. The general public is not often in a good place of knowledge on Glo’s operations.
Regulatory and Financial issues
Globacom’s regulatory troubles are not new. In 2023, the NCC temporarily suspended regulatory services to the company over a series of compliance violations, including unpaid spectrum fees and annual operating levies. The suspension was only lifted after Globacom cleared its debts. Additionally, in January 2024, the NCC issued a Pre-Disconnection Notice to Globacom due to a long-standing interconnection debt dispute with MTN Nigeria, further straining its reputation.
The company’s struggles have extended to the quality of service as well. In 2023, alleged cyberattacks reportedly compromised customer data and disrupted operations. Glo has denied this. But sources claimed the attacks were perpetrated by former disgruntled staff. Many see this as highlighting internal management challenges that Go needs to engage the public on.
Can Farroukh Turn the Tide?
The appointment of Ahmad Farroukh as CEO is widely seen as a pivotal moment for Globacom. With over two decades of telecom leadership, including roles at MTN Ghana, MTN Nigeria, and Saudi Arabia’s Mobily, Farroukh brings extensive experience to the table. Yet, the question remains: Will he have the autonomy to drive meaningful change, or will Globacom’s founder, Dr. Mike Adenuga Jr.—often referred to as the “Big Masquerade”—limit his influence?
Farroukh’s predecessors, like George Andah who was hired to lead Globacom Ghana, faced constraints that limited their effectiveness. If Adenuga micromanages, as he reportedly did in the past, Farroukh’s ability to implement the necessary reforms may be hampered. The coming months will be crucial in determining whether Globacom can regain its footing and restore customer confidence.
A Path to Redemption?
Globacom’s future hinges on its ability to adapt to Nigeria’s increasingly competitive telecom landscape, where market dynamics are shifting rapidly. Farroukh’s leadership could be the catalyst for a turnaround. But only if he’s granted the freedom to address Globacom’s core issues. In a market driven by transparency, reliable service, and regulatory compliance, the stakes are high for Nigeria’s indigenous telecom leader.
As Nigeria’s telecom sector evolves, Globacom’s next moves will not only determine its survival but also its legacy as an-innovative force that changed the game. Will Farroukh be the leader who steers the company back to success, or will Globacom experience a downward spiral? The answers lie in the months ahead, as the company navigates its most challenging phase yet.
