CIG Motors Company Ltd and its former executive director, Jubril Arogundade, have engaged in a public dispute over the circumstances surrounding his departure from the automobile firm.
The company said it terminated Arogundade’s appointment over alleged financial misappropriation and abuse of authority, a claim the former executive has strongly denied.
In a statement, CIG Motors said Arogundade’s appointment was terminated with immediate effect following the conclusion of an internal investigation, which it claimed uncovered conduct that fell short of the company’s governance, compliance and ethical standards.
According to the company, the investigation followed a period of suspension and a comprehensive internal review. It added that issues relating to alleged financial impropriety had been referred to the Economic and Financial Crimes Commission (EFCC) for further investigation.
“CIG Motors maintains a zero-tolerance stance on financial misconduct and abuse of authority, particularly at senior management level,” the company said.
It also assured stakeholders that the development would not disrupt its operations, reiterating its commitment to strong internal controls, accountability and sound corporate governance.
However, Arogundade dismissed the allegations, describing them as “malicious, misleading and deliberately designed to distort the facts.”
In a statement issued to journalists on Sunday, Arogundade said he had already resigned from the company on December 2, 2025, in line with his contractual notice period, and questioned why his exit was now being linked to alleged financial impropriety.
“My resignation was duly communicated to the leadership of the company and was neither disputed nor rejected at the material time,” he said. “Any attempt to portray subsequent events as an ‘immediate termination’ is therefore deliberately misleading.”
Arogundade, who also served as Acting Managing Director of Lagride Nigeria Ltd, said his decision to resign followed prolonged disagreements with the company’s leadership over what he described as rising debt exposure, weak corporate governance, and persistent regulatory and tax compliance failures.
He claimed he had raised concerns internally about continuous borrowing without an effective debt management framework, unresolved governance red flags, and regulatory and tax compliance issues, which he said were not adequately addressed.
He further alleged that longstanding tax compliance challenges under the chairmanship of Diana Chen had attracted enforcement action by tax authorities, including the reported issuance of a warrant of distraint involving sums running into several billions of naira.
Reacting to the company’s decision to refer the matter to the EFCC, Arogundade said he was not apprehensive about any investigation and denied receiving any formal invitation from the anti-graft agency.
He expressed readiness to cooperate fully with any lawful inquiry if invited, adding that he had engaged the law firm of Chikaosolu Ojukwu (SAN) to issue cease-and-desist notices to media organisations and individuals he accused of publishing false information about him.
