Crisis rocks CIG Motors as Management, ED trade words over exit

Weeks of tension and apprehension the corporate leadership of CIG Motors Co. Ltd have turned into a full blown crisis following the purported termination of the appointment of its Executive Director, Jubril Arogundade popularly known as Jubril of Lagos. CIG Motors is the owner of renowned automotive brands, which include GAC, JMC, DFM, among others […]

Weeks of tension and apprehension the corporate leadership of CIG Motors Co. Ltd have turned into a full blown crisis following the purported termination of the appointment of its Executive Director, Jubril Arogundade popularly known as Jubril of Lagos.

CIG Motors is the owner of renowned automotive brands, which include GAC, JMC, DFM, among others offering a diverse portfolio of vehicles and services to meet the evolving needs of consumers in Nigeria and beyond.

Recently the group has expanded its portfolio with the partnership with the Lagos State Government to establish Lagosride, a ride-hailing company which provides brand new GAC vehicles to subscribers to offer safe and reliable transportation for Lagosians.

Over time, Jubril Arogundade has been the face of the brand. From General Manager of the company and his promotion in 2024 to the position of the Executive Director, he was said to have helped to build the GAC brands in Nigeria.

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Following the establishment of the Lagride and the ongoing partnership with the Lagos State Government which has supplied thousands of brand new vehicles assembled at the GAC’s state-of-the-art assembly plant in Ogba Ikeja, Lagos, he was appointed as the Acting Managing Director of the company.

Over time, Arogundade has had a good working relationship with Ms. Diana Chen, the Chairman of GIC Motors.

But it appears the good working relationship has hit the rock with the purported termination of Arogundade’s appointment over the weekend.

The automotive company stated that the decision to terminate Arogundade’s appointment followed internal investigations which allegedly “uncovered issues relating to financial misappropriation and abuse of authority,” adding the matter has been referred to the Economic and Financial Crimes Commission (EFCC).

However Jubril in a chat with our correspondent dismissed the corruption allegations, saying the statement by the CIG Motors is false as he actually resigned since December 2, 2025 with his last working day being January 2, 2026.

The CIG Motors’ statement said the findings of the investigation revealed conduct “that fell significantly below the company’s governance, compliance, and ethical standards, making immediate termination necessary.”

The company further disclosed that matters connected to financial impropriety arising from the investigation have been formally referred to the Economic and Financial Crimes Commission (EFCC).

CIG Motors stated that it is cooperating fully with the authorities as the matter progresses through the appropriate regulatory and legal channels.

CIG Motors emphasised that the action reflects a zero-tolerance stance on financial misconduct and abuse of authority, particularly at senior management level.

The company noted that safeguarding institutional integrity and maintaining robust internal controls remain central to its operations.

The statement also added that CIG Motors will not engage in further public commentary on the matter, stressing that it is now before the relevant authorities. The company added that operational continuity across the business remains unaffected.

 

Statement suggesting I was sacked false, I resigned – Arogundade

But Jubril in a chat with our correspondent insisted that he resigned from the company over issues of financial misappropriation which he has endured for too long.

He also forwarded a screenshot of the mail he sent to the Chairman of the Company, Diana Chen to inform her of his resignation while giving a one-month notice which elapsed on Friday January 2, 2026.

He said, “I resigned from the company on the second of December. She wants to blackmail and destroy my name but she’s not going to be successful.

“Whatever they have given you is a false information and a good media house will not publish it without getting my own side. My lawyers are drafting an official statement.”

He clarified that the allegations of financial misappropriation is unfounded because customers don’t pay money to his account and he is not also the accountant of the company.

Arogundade said he would be ready to appear before the EFCC anytime he is invited to prove his innocence.

“On the misappropriation of funds they are talking about, I’m the one questioning the Chairman of the company for all the funds of the company, to ask where the money is,” he added.

In the rejoinder later sent to our correspondent, Jubril raised very fundamental questions about issues of corporate governance in GIC.

He said, “On 2nd December 2025, I formally tendered my resignation from my position as Executive Director of CIG Motors Company Limited and Acting Managing Director of Lagride Nigeria Limited, in writing and in line with the required notice period, clearly stating my final working day. This resignation was duly communicated to the leadership of the company and was neither disputed nor rejected at the material time.

“Any attempt to portray subsequent events as an “immediate termination” is therefore deliberately misleading and designed to distort the facts.

“My resignation followed prolonged and fundamental disagreements arising from serious concerns about the company’s growing debt profile, weak corporate governance practices, and persistent compliance failures, despite internal safeguards and repeated warnings.

“In particular, I had deep reservations about: continuous borrowing without proper debt management structures, failures of corporate governance despite internal red flags, and unresolved regulatory and tax compliance issues.

“Having raised these concerns internally without meaningful resolution, I chose to step aside rather than remain associated with practices I could no longer responsibly defend.

“It is also pertinent to state that longstanding tax compliance issues under the chairmanship of Ms. Diana Chen have resulted in enforcement action by tax authorities, including the issuance of a warrant of distraint for sums reportedly running into several billions of naira.

“These matters were among the issues that generated serious internal concern and disagreement. They will be addressed in due course and through the appropriate lawful channels.”