CIG Motors Co. Ltd has announced the immediate termination of the appointment of its Executive Director, Jubril Arogundade, following internal investigations that allegedly uncovered issues relating to financial misappropriation and abuse of authority. The company made the announcement through a press release distributed to Nigerian media outlets on Friday, January 3, 2026.
In a statement made available to Nairametrics, the company said the decision followed a period of suspension and a comprehensive internal review. According to CIG Motors, the findings of the investigation allegedly 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 alleged 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 emphasized that the action reflects a zero tolerance stance on alleged 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 clarified 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.
Arogundade had been serving as Executive Director of CIG Motors, playing a key role in the company’s operations. In his capacity, he had represented the company at major industry events and was instrumental in showcasing the organization’s vehicle assembly capabilities. The executive had previously spoken about the company’s factory production capacity and workforce development initiatives.
In November 2024, Arogundade disclosed that CIG Motors had assembled 2,000 units of GAC branded vehicles at its modern plant located in the Ogba area of Ikeja, Lagos, within six months of the facility’s commissioning in October 2023. Our factory boasts an annual production capacity of 5,000 to 50,000 vehicles. Notably, within just six months of opening, we successfully assembled and launched our first 2,000 units, he stated during a tour by members of the House of Representatives Committee on Industry.
He had emphasized the company’s commitment to local workforce development, noting that 98% of the factory staff were Nigerian nationals. CIG Motors has trained over 200 young Nigerians, with numbers steadily increasing as the company continues to prioritize skills development in the automotive sector, he said at the time.
The development aligns with a broader trend seen across Nigeria’s corporate and financial landscape in recent months, where several organizations have taken decisive action against senior executives following internal probes, regulatory breaches, or governance failures. Analysts note that such actions signal growing pressure on corporate boards to strengthen oversight, enforce accountability, and demonstrate compliance with governance best practices.
CIG Motors reiterated its commitment to the highest standards of corporate governance, accountability, and transparency, assuring stakeholders that appropriate measures are in place to protect the company’s long term stability and reputation.
CIG Motors Co. Ltd is a Nigerian subsidiary of Choice International Group, headquartered in Guangzhou, China. The company operates as the exclusive distributor of GAC (Guangzhou Automobile Group) Motors vehicles in Nigeria and has established a vehicle assembly plant in Lagos through a joint venture with the Lagos State Government.
The vehicle assembly plant, located in the Ogba area of Lagos, was inaugurated in October 2023 by Governor Babajide Sanwo Olu. The facility represents a significant investment in Nigeria’s automotive sector and forms part of the bilateral agreements reached between the Lagos State Government and Chinese investors during the Governor’s visit to China in November 2019.
The project industrial area covers a total of 35,000 square meters, with the automobile production line covering an area of 4,800 square meters. Installation of the plants and machinery for the production line took seven months to complete and was supervised by world class engineers. Local employees received hands on vocational training in the processes involved.
The company is led by Chief Diana Chen, a graduate of Peking University HSBC Business School, who founded the Choice International Group 23 years ago. Chief Chen, who also serves as Vice Chairman of the China Africa Business Council (CABC), has been instrumental in facilitating trade relationships between China and Nigeria.
Beyond vehicle assembly, CIG Motors partnered with the Lagos State Government to launch the LagRide taxi scheme, which deployed 1,000 units of brand new Sport Utility Vehicles (SUVs) to redefine road transportation in Lagos. The initiative was part of the state government’s efforts to give residents better transportation options.
CIG Motors has formed strategic partnerships with various Nigerian organizations including the Manufacturers Association of Nigeria (MAN), the Nigerian Football Federation (NFF), and the Institute of Chartered Accountants of Nigeria (ICAN). The company has donated vehicles to support these partnerships and showcase the GAC Motor brand.
The company began operations in Nigeria in 2014 following a partnership agreement with Guangzhou Automobile Group Co., Ltd (GAC MOTOR) to establish and manage distribution networks in the country. GAC Motors started with the introduction of the GS5 SUV and GA3 sedan models, with plans to expand its product range.
The EFCC is Nigeria’s principal anti corruption agency, established in 2003 to combat economic and financial crimes. The commission has jurisdiction to investigate and prosecute cases involving financial fraud, money laundering, embezzlement, and other economic offenses. Referrals to the EFCC typically follow when organizations uncover alleged financial irregularities that may constitute criminal offenses.
Nigerian corporate governance regulations require companies to maintain robust internal control systems and report suspected financial misconduct to appropriate authorities. The Securities and Exchange Commission (SEC), Corporate Affairs Commission (CAC), and Financial Reporting Council of Nigeria (FRCN) all play oversight roles in ensuring compliance with governance standards.
Recent months have seen increased scrutiny of corporate governance practices across Nigeria’s business landscape, with regulators emphasizing the importance of transparency, accountability, and ethical conduct at all management levels. Several high profile cases involving senior executives have resulted in terminations, regulatory sanctions, and criminal prosecutions.
The automotive sector in Nigeria has been experiencing renewed interest from investors following government policies aimed at promoting local assembly and manufacturing. The National Automotive Design and Development Council (NADDC) has been working with stakeholders to develop the industry and create employment opportunities.
CIG Motors’ vehicle assembly plant represents one of the significant investments in Nigeria’s automotive manufacturing sector, contributing to job creation, skills development, and technology transfer. The facility’s operations have been viewed as a model for public private partnerships in industrial development.
At the time of the termination announcement, neither Jubril Arogundade nor his representatives had issued any public statement regarding the allegations or the company’s decision. Attempts to reach Arogundade for comment were unsuccessful as of press time.
