OPEYEMI OLOTU
The exit of former CIG Motors Executive Director, Mr. Jubril Arogundade, has opened a wider debate on corporate governance, debt exposure and regulatory compliance within one of Nigeria’s prominent automotive groups, following his public rejection of claims that he was dismissed from the company.
Arogundade has described reports circulating on blogs and social media portraying his exit as an “immediate termination” as false and misleading, insisting that he voluntarily resigned long before the publications emerged. According to him, the reports were designed to harass, intimidate and damage his professional reputation rather than provide a factual account of events.
In a statement obtained by Motoring World, Arogundade said he formally submitted his resignation on December 2, 2025, stepping down as Executive Director of CIG Motors Company Limited and Acting Managing Director of Lagride Nigeria Limited. He said the resignation complied fully with contractual notice requirements, carried a clearly defined final working day, and was duly communicated to the company’s leadership without objection at the time.
“The attempt to retrospectively describe my exit as a termination is a deliberate distortion of facts,” he stated.
Beyond the dispute over the nature of his departure, Arogundade’s account points to deeper internal rifts over the company’s operational and governance direction. He said his decision to resign followed prolonged disagreements with leadership over what he characterised as a growing debt profile, weak corporate governance practices, and persistent regulatory and compliance failures.
Among the concerns he raised were continued borrowing without adequate debt management frameworks, unresolved governance red flags despite internal controls, and outstanding regulatory and tax compliance issues. He noted that these matters were repeatedly escalated internally but remained unaddressed, ultimately making his continued stay untenable.
Arogundade further alleged that longstanding tax compliance challenges under the chairmanship of Ms. Diana Chen had attracted enforcement actions from tax authorities, including the issuance of a warrant of distraint for sums reportedly running into several billions of naira. He said these issues were among the flashpoints that led to sharp internal disagreements and would now be addressed through appropriate legal channels.
While rejecting any insinuation of wrongdoing on his part, Arogundade said he was not afraid of scrutiny or investigation by any lawful authority, including the Economic and Financial Crimes Commission (EFCC). He confirmed that he had not received any invitation from the commission but would fully cooperate with any inquiry that promotes transparency and the recovery of statutory obligations.
“I have nothing to hide,” he said, adding that accountability and institutional integrity must take precedence over media narratives.
The former executive also criticised what he described as “trial by media,” arguing that the timing and framing of the reports, long after his resignation, suggested an effort to rewrite the narrative and deflect attention from substantive governance issues.
He has since appointed the law firm of Chikaosolu Ojukwu (SAN) to pursue legal remedies, including cease-and-desist notices against media organisations and individuals involved in disseminating what he described as falsehoods.
For Nigeria’s automotive industry, the episode underscores broader concerns about governance standards, financial discipline and regulatory compliance at a time when the sector is seeking policy stability, investor confidence and sustainable local manufacturing growth. As the matter shifts from the media space to legal and regulatory arenas, industry watchers say transparency will be key to restoring confidence and separating fact from speculation.
