Deadline Set for Globacom to Appoint Separate CEO Within 24 Months by NCC
The telecom company, Globacom, is facing the possibility of regulatory sanctions from the Nigerian Communications Commission (NCC) if it fails to comply with the corporate governance guidelines requiring the separation of the CEO and Board Chairman roles by 2027.
The NCC has issued new "Guidelines on Corporate Governance for the Communications Industry" in March 2025, aiming to ensure proper checks and balances within the organisation. These guidelines apply to all licensed telecommunications companies in Nigeria, not just Globacom.
Under the new rules, all companies are required to have separate individuals for the positions of Board Chairman and CEO. This reform targets conflicts of interest and lack of board independence, particularly in the case of Globacom's founder-led dual role, which is unique among major Nigerian telecom operators.
The contextual guidelines issued in 2025 require Globacom to appoint an independent CEO and have a non-executive Chairman, with the Chairman prohibited from holding executive powers. The company has 24 months from the issuance of the guidelines to comply with this requirement.
If Globacom fails to meet this two-year deadline, it may face several specific regulatory sanctions. These sanctions include fines imposed by the NCC for non-compliance, suspension of its operating license, revocation of its operating license if the breach is considered serious, and orders for changes in Globacom’s management within a specified timeframe to enforce compliance.
These potential penalties reflect the NCC's enforcement powers under the new corporate governance framework aimed at promoting accountability and aligning with global best practices. The NCC's actions underscore its commitment to maintaining a fair and competitive telecommunications industry in Nigeria.
It is essential for Globacom to take these guidelines seriously and work diligently to ensure compliance within the given timeframe to avoid facing these regulatory sanctions. The NCC's enforcement powers are a testament to its role as the regulatory body overseeing Globacom and the wider telecommunications industry in Nigeria.
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As the NCC enforces the new corporate governance framework, financial penalties may be levied against Globacom for non-compliance with the separation of CEO and Board Chairman roles, as per the guidelines released in 2025. This financial scrutiny is part of an effort to foster a competitive and accountable business environment within the Nigerian telecoms sector.
In accordance with the 2025 guidelines, all licensed telecoms companies in Nigeria, including Globacom, must adopt separate individuals for the positions of CEO and Board Chairman to address conflicts of interest and board independence. This reform is a significant step towards aligning Nigerian telecoms with global best practices.
