By Theodore Opara
A deepening corporate crisis has hit CIG Motors Company Limited as conflicting claims over the exit of a top executive snowball into allegations of financial misconduct and a possible probe by the Economic and Financial Crimes Commission (EFCC).
At the centre of the controversy is Jubril Arogundade, former Executive Director of the automobile firm, whose departure has exposed serious fault lines within the company’s leadership and raised questions over corporate governance, debt exposure and regulatory compliance.
At the weekend, CIG Motors announced that it had terminated Arogundade’s appointment with immediate effect, citing the outcome of a “comprehensive internal investigation” which allegedly uncovered financial impropriety and abuse of office.
The company disclosed that aspects of the findings had been referred to the EFCC for further investigation.
In a statement, the company said Arogundade’s conduct fell “significantly below acceptable governance, compliance and ethical standards,” stressing that the decision followed a period of suspension and internal review.
“This action underscores our zero-tolerance stance on financial misconduct, particularly at senior management level,” CIG Motors stated, assuring customers and stakeholders that its operations remain stable while pledging full cooperation with law enforcement agencies.
However, the company’s account was swiftly challenged by Arogundade, who denied being sacked and insisted that he voluntarily resigned weeks earlier.
In a detailed rebuttal, the former executive said he formally resigned on December 2, 2025, from both CIG Motors and its subsidiary, Lagride Nigeria Limited, citing irreconcilable differences over the firm’s financial direction and governance practices.
He described the company’s announcement of his “immediate termination” as misleading and an attempt to distort the timeline of events.
“My resignation followed persistent concerns about rising debt exposure, weak corporate governance and repeated compliance failures,” Arogundade said, adding that his internal warnings were allegedly ignored.
He further alleged that longstanding tax compliance issues under the leadership of the company’s chairperson, Ms Diana Chen, had drawn enforcement actions by tax authorities, including a reported warrant of distraint involving billions of naira—claims yet to be publicly addressed by the company.
While denying any wrongdoing, Arogundade said he had no fear of scrutiny and would cooperate fully with any lawful investigation, though he maintained that he had not received any invitation from the EFCC as of the time of his statement.
Until his exit, Arogundade was widely regarded within the company as a trusted lieutenant of the chairman and chief executive officer, enjoying broad operational latitude and overseeing several major transactions. Sources said many deals were initiated and executed under his supervision, with final approvals often coming at board level.
Having risen through the ranks from General Manager, Arogundade was long considered a leading contender for the Managing Director position when it became vacant. Instead, his appointment as Executive Director was seen as a strategic consolidation of his influence—an expectation that later unravelled amid disputes involving customers, partners and internal controls.
Beyond the dispute over whether his exit was a resignation or a termination, industry analysts say the episode highlights deeper governance tensions within the company. Sources familiar with the internal probe said investigators reviewed multiple transactions and management decisions allegedly in breach of internal controls, though details remain under wraps due to the referral to authorities.
CIG Motors has declined further comments, saying the matter is now before relevant agencies. But with allegations and counter-allegations firmly in the public space, observers say the saga could test not only the company’s governance framework but also the credibility of its leadership.
As regulators weigh the issues placed before them, the unfolding CIG Motors episode is fast becoming a cautionary tale of how boardroom disputes, when intertwined with claims of financial misconduct, can escalate into a full-blown corporate and reputational crisis.
Below is the resignation letter:
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