KEY POINTS

• CIG Motors dismisses an executive director after an internal probe.
• The company refers alleged misconduct to the EFCC.
• The former director insists he resigned voluntarily.

CIG Motors Co. Ltd. has terminated the appointment of its Executive Director, Jubril Arogundade, following allegations of financial misappropriation and abuse of authority, escalating the matter to Nigeria’s anti-graft agency as scrutiny mounts around the company’s internal controls.

The automobile firm confirmed that the case has been formally referred to the Economic and Financial Crimes Commission for investigation. In a statement released on Sunday, CIG Motors said Arogundade’s appointment was terminated with immediate effect after an internal inquiry into his conduct while in office.

The company said the decision followed an earlier suspension and what it described as a comprehensive internal review. According to the statement, the investigation uncovered conduct that fell below the company’s governance, compliance and ethical standards. Management, it said, approved the dismissal due to the seriousness of the findings.

CIG Motors scandal unfolds internally

CIG Motors said aspects of the probe involving alleged financial impropriety were referred to law enforcement authorities for further action. The company said it is cooperating fully with investigators as the matter progresses through legal and regulatory channels.

The firm stressed that the action reflects its stated position on ethical conduct, particularly at senior management level. It said safeguarding institutional integrity and protecting stakeholder interests remain central to its operations.

People familiar with the matter said the internal investigation reviewed a number of transactions and management decisions that were alleged to have breached established internal controls. While CIG Motors declined to disclose specific details, it said the review process was thorough and guided by its governance framework.

Scandal draws response

CIG Motors also sought to reassure customers, partners and investors that the development would not disrupt its operations. The company said business activities continue as normal and operational continuity remains unaffected despite the leadership shake-up.

It added that it would not make further public comments since the matter is now before relevant authorities.

Arogundade, however, rejected claims that he was dismissed, according to Punch. When contacted, he said he voluntarily resigned on December 2, 2025, describing reports of his termination as misleading. He said his exit followed prolonged disagreements over the company’s financial and governance direction.

According to him, his decision was driven by concerns about rising debt levels, weak corporate governance practices and recurring compliance failures, despite internal safeguards and repeated warnings. He said he stepped aside after raising these issues without meaningful resolution.

Arogundade also alleged that longstanding tax compliance problems under the chairmanship of Diana Chen had triggered enforcement actions by tax authorities, including a warrant of distraint involving several billions of naira. He said those issues deepened internal concern.

He maintained that he is not afraid of any investigation and said he is willing to cooperate with any lawful inquiry, even though he has not been invited by the EFCC.