A financial controversy has hit CIG Motors Company Limited following the removal of its Executive Director, Jubril Arogundade, over accusations relating to financial mismanagement and misuse of authority.
The company confirmed that the matter has now been officially forwarded to the Economic and Financial Crimes Commission for further investigation. In a statement issued on Sunday, CIG Motors announced that Arogundade’s appointment had been terminated with immediate effect, following the conclusion of an internal inquiry.
According to the company, the decision was taken after a period of suspension and a “comprehensive internal review” of his activities while in office. The automobile firm stated that “The findings of the investigation revealed conduct that fell significantly below the company’s governance, compliance, and ethical standards.
“In view of the seriousness of the issues uncovered, management approved the immediate termination of his appointment.”
CIG Motors added that parts of the investigation that relate to alleged financial wrongdoing have now been escalated to security agencies. “Matters connected to financial misconduct arising from the investigation have been formally referred to the Economic and Financial Crimes Commission.”
The company further explained that it is “cooperating fully with the authorities as the matter progresses through the appropriate legal and regulatory channels.”
It stressed that the action taken against the former executive demonstrates its firm stance on ethics and accountability. “CIG Motors maintains a zero-tolerance stance on financial misconduct and abuse of authority, particularly at the senior management level. Safeguarding institutional integrity and protecting stakeholder interests remain central to our operations.”
Insiders within the organisation revealed that the internal investigation reviewed several transactions and management decisions which allegedly violated established internal control procedures. Although the company declined to release specific details, it stated that the exercise was rigorous and guided strictly by its internal governance framework.
CIG Motors also moved to reassure investors, partners, and customers that the development would not affect its operations. “Operational continuity across the business remains unaffected,” the company said, noting that normal activities are continuing despite the dismissal of the Managing Director.
“We will not engage in further public commentary on this matter as it is now before the relevant authorities,” the statement added.
When approached for his reaction, Arogundade refuted claims that he was dismissed from his role, stating that he resigned voluntarily on December 2, 2025. He described the claims as inaccurate and a misrepresentation of the circumstances surrounding his departure.
Giving reasons for his exit, Arogundade explained that his resignation followed prolonged and fundamental disagreements over the company’s financial direction and governance structure.
He further stated that, “My resignation followed serious concerns about the company’s growing debt profile, weak corporate governance practices, and persistent compliance failures, despite internal safeguards and repeated warnings.”
He said he chose to leave after repeatedly raising his concerns without receiving meaningful intervention. He also revealed that longstanding tax compliance challenges under the leadership of Ms Diana Chen had led to enforcement actions by tax authorities, including a reported warrant of distraint involving amounts running into several billions of naira.
According to him, these matters were among the major issues that caused deep unease within the company. Arogundade also insisted that he has no fear of any investigation, emphasising that although he has not yet been contacted by the Economic and Financial Crimes Commission, he remains fully ready to cooperate with any legitimate inquiry.
