Globacom’s CEO Gap Draws NCC’s Attention as Governance Rules Tighten

For almost two years, Globacom, Nigeria’s only fully indigenous telecom giant, has operated without a Chief Executive Officer (CEO) distinct from its chairman. That leadership gap is now colliding with new corporate governance rules rolled out by the Nigerian Communications Commission (NCC), leaving the company exposed to sanctions.

The NCC’s directive, issued on August 7, 2025, mandates that all licensed operators must clearly separate the roles of board chairman and CEO. It is a move designed to strengthen accountability and align Nigeria’s telecom sector with international best practices.

“Telecoms have become critical national infrastructure, just like banks,” said a telecom governance consultant based in Lagos. “When the banking reforms forced clear separation of power, it built resilience into the system. The NCC is finally applying that same standard here.”

Glo, the Outlier

Among Nigeria’s “four major operators—MTN, Airtel, T2 (formerly 9mobile), and Globacom”, only Glo has yet to comply. MTN and Airtel have long-established corporate structures with independent CEOs and boards. T2, after years of turbulent ownership changes, now operates under a governance model that clearly distinguishes strategic oversight from day-to-day management.

Globacom, however, has remained tied to a founder-led model where Mike Adenuga, billionaire businessman and chairman, also serves as CEO. Supporters argue this structure has given the company speed and consistency in decision-making. But critics insist it stifles independence and undermines transparency.

“Globacom has thrived on the vision of one man, and that’s admirable,” said a telecom analyst with Afriview Research. “But the industry has outgrown that model. To compete in the next decade, Glo must separate personality from institution.”

A Short-Lived Experiment

The closest Glo came to reform was in 2024, when it appointed telecom veteran Ahmad Farroukh as CEO. His tenure lasted barely two months. While no official explanation was given, industry insiders pointed to disagreements over operational control and decision-making. Farroukh’s resignation returned Adenuga to the dual role of chairman and CEO, a structure now expressly prohibited under the NCC’s new framework.

What the Rules Say

The NCC guidelines are clear:

• The chairman must be non-executive and cannot also serve as CEO.
• Boards must consist of a mix of executive, non-executive, and independent directors, with non-executive directors outnumbering executives.
• At least one-third of directors must be independent, with ICT and cybersecurity expertise represented.

Operators that fail to comply risk fines, management restructuring orders, suspension, or, in severe cases, revocation of their operating licences.

The Road Ahead

Globacom has yet to publicly comment on the ultimatum. But industry insiders say the company faces a critical test: modernise its governance model or risk regulatory punishment.

“MTN, Airtel, and even T2 have shown that separation of powers doesn’t weaken a company, it strengthens it,” Dr. Alade added. “Globacom must decide if it wants to remain an outlier or align with the global standards shaping Nigeria’s digital future.”

What This Means for Customers

For subscribers, the NCC’s push is not just about corporate structures, it could shape the future of telecom services in Nigeria. Experts say stronger governance often translates to:

• Better service quality, as companies adopt clearer accountability and oversight.
• More competitive pricing, since independent leadership encourages market-driven decisions.
• Improved customer confidence, with regulators ensuring no single individual wields unchecked power over critical infrastructure.

As one Lagos-based industry watcher put it: “Customers may not care who sits in the boardroom, but they feel the impact in dropped calls, data costs, and network reliability. Governance reform is ultimately about protecting the user experience.”

@2025 The Ameh News: All Rights Reserved