A financial scandal has rocked CIG Motors Co. Ltd following the termination of the appointment of its Executive Director, Jubril Arogundade, over allegations of financial misappropriation and abuse of authority.

The company confirmed that the matter has been formally referred to the Economic and Financial Crimes Commission for further investigation.

According to PUNCH Newspaper, CIG Motors announced the immediate termination of Arogundade’s appointment, citing the outcome of an internal investigation.

The company said the decision followed a period of suspension and a “comprehensive internal review” into his conduct while in office. The automobile company said, “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 further disclosed that aspects of the investigation involving alleged financial impropriety have been escalated to law enforcement authorities. “Matters connected to financial misconduct arising from the investigation have been formally referred to the Economic and Financial Crimes Commission.”

The firm further stated that it is “cooperating fully with the authorities as the matter progresses through the appropriate legal and regulatory channels.”

The company stressed that the action taken against the former executive reflects its firm position on ethical conduct. “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.”

Sources within the company said the internal probe examined several transactions and management decisions that allegedly breached established internal controls. While the company declined to provide details, it noted that the process was thorough and guided by its internal governance framework.

CIG Motors also sought to reassure customers, partners, and investors that the development would not disrupt its business. “Operational continuity across the business remains unaffected,” the company said, emphasising that day-to-day activities are proceeding normally despite the Managing Director’s dismissal.

“We will not engage in further public commentary on this matter as it is now before the relevant authorities,” the statement added.

When contacted for his response, Arogundade dismissed reports claiming he was sacked from his position, insisting that he voluntarily resigned on December 2, 2025. He described the reports as misleading and a distortion of the facts surrounding his exit.

Explaining his decision, Arogundade said his resignation followed prolonged and fundamental disagreements over the company’s financial and governance direction.

He added 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 stated that he chose to step aside after his concerns were repeatedly raised without meaningful resolution. He further disclosed that longstanding 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 sums running into several billions of naira.

These issues, he said, were among those that generated deep internal concern. Arogundade also maintained that he is not afraid of any investigation, stressing that while he has not been invited by the EFCC, he is fully willing to cooperate with any lawful inquiry.