CIG Motors Co. Ltd has been thrown into a financial controversy following the removal of its Executive Director, Jubril Arogundade, over allegations of financial mismanagement and abuse of office.
The company confirmed that the matter has been reported to the Economic and Financial Crimes Commission (EFCC) for further investigation. In a statement released on Sunday, CIG Motors said Arogundade’s appointment was terminated with immediate effect after the conclusion of an internal inquiry.
According to the company, the action followed a period of suspension and an extensive internal assessment of his activities while serving as executive director. CIG Motors explained that the investigation uncovered conduct that failed to meet the organisation’s standards of governance, compliance, and ethics.
“The outcome of the investigation showed actions that were far below the company’s governance, compliance, and ethical expectations. Given the severity of the findings, management approved the immediate termination of his appointment,” the statement said.
The firm further disclosed that issues relating to alleged financial misconduct identified during the investigation have been escalated to law enforcement agencies. It confirmed that such matters have been formally referred to the EFCC and noted that it is fully cooperating with the commission as investigations continue through the appropriate legal and regulatory channels.
CIG Motors reiterated its strong stance against unethical behaviour, particularly at the senior management level. It emphasised that it operates a zero-tolerance policy toward financial misconduct and abuse of authority, stressing that protecting institutional integrity and stakeholder interests remains a core priority.
Sources within the company revealed that the internal probe reviewed multiple transactions and management decisions that allegedly breached established internal control procedures. Although the company declined to disclose specific details, it said the investigation was thorough and conducted in line with its internal governance framework.
The automobile firm also sought to reassure customers, business partners, and investors that the development would not affect its operations. It stated that business activities remain stable and uninterrupted despite the exit of the executive director. “Operations across the organisation continue as normal,” the company said.
CIG Motors added that it would not make further public statements on the issue, as the matter is now before the appropriate authorities.
In response, Arogundade denied claims that he was dismissed, insisting instead that he voluntarily resigned from his position on December 2, 2025. He described reports suggesting otherwise as inaccurate and misleading.
He explained that his decision to step down followed prolonged and fundamental disagreements with the company’s leadership over its financial management and governance approach. According to him, he had raised concerns about the company’s increasing debt burden, weak corporate governance structures, and ongoing compliance lapses, which he said persisted despite internal safeguards and repeated warnings.
Arogundade also alleged that unresolved tax compliance issues under the chairmanship of Ms Diana Chen had resulted in enforcement actions by tax authorities, including a reported warrant of distraint involving billions of naira. He said these matters generated serious internal concern.
While stating that he has not been invited by the EFCC, Arogundade maintained that he is unafraid of any investigation and is willing to cooperate fully with any lawful inquiry.
