Globacom has 24 months to appoint a chief executive officer (CEO) separate from the chairman or risk facing regulatory sanctions from the Nigerian Communications Commission (NCC). The ultimatum is part of sweeping new corporate governance rules released on August 7, 2025, to strengthen accountability, transparency, and operational independence in the country’s telecom sector.

“It is similar to what the banking sector in Nigeria did many years ago, ensuring the banks adhere strictly to global standards when it comes to corporate governance,” said one telecom executive who wanted to remain anonymous to speak freely. “The telecom industry took too long to arrive here.”

Under the new guidelines, telecom operators must separate the board chairman and CEO positions—a standard already met by MTN Nigeria, Airtel, and T2 (formerly 9mobile). Globacom, however, remains the lone exception among the four major operators, with its founder and chairman, Mike Adenuga, doubling as CEO since the company’s inception.

Globacom did not respond to a request for comments.

This long-standing concentration of executive power has been one of the defining features of Globacom’s corporate structure and a recurring source of governance concerns. While Adenuga is widely credited with steering the company into becoming a formidable player in Nigeria’s telecom market, the absence of a distinct and independent CEO role has limited Globacom’s ability to modernise its governance model in line with international best practices.

In 2024, Globacom appeared to move toward compliance when it appointed veteran telecom executive Ahmad Farroukh as CEO. Farroukh’s tenure, however, was remarkably short-lived, ending after just two months. While no official reason was given for his departure, industry insiders suggested that differences over operational control and decision-making processes contributed to the quick exit.

Farroukh’s resignation effectively restored the company to its previous arrangement, with Adenuga again serving as chairman and chief executive, violating the NCC’s new governance framework.

The NCC’s Corporate Governance Guidelines mandate that the board of every licensed telecom operator must consist of at least five members, including a non-executive chairman, an MD/CEO, executive directors, non-executive directors (NEDs), and independent non-executive directors (INEDs). Importantly, the number of non-executive directors must exceed that of executive directors, and at least one-third of the board must be independent.

The rules further stipulate that at least two non-executive directors—one of whom must be independent—should have relevant expertise in information communication technology (ICT) and/or cybersecurity. Most significantly for Globacom, the chairman must be a non-executive director elected by the board, and under no circumstances can the chairman exercise executive powers or assume the role of MD/CEO.

The NCC’s enforcement powers under the new guidelines are extensive. Failure to comply after notification can attract sanctions, starting with fines and extending to suspension or even revocation of operating licences. In the case of serious breaches, the Commission reserves the right to order changes in a licensee’s management within a specified period.

Globacom’s governance model has long stood in contrast to its rivals. MTN Nigeria, Airtel Africa, and 9mobile operate with clearly defined board structures, independent leadership, and separation of strategic oversight from day-to-day operations. In Globacom’s case, however, governance has historically revolved around a founder-led model. While this has allowed for swift decision-making and a consistent strategic vision, it has also meant that key executive roles are closely tied to the chairman’s office, limiting independence and potentially slowing institutional reforms.

The failed appointment of Farroukh underscored the difficulty of balancing a founder’s influence with the autonomy required of a modern corporate executive. (Techcabal)