CIG Motors Co. Ltd has terminated the appointment of its Executive Director and Acting Managing Director of Lagride, Jubril Arogundade
According to a statement by the company, the decision followed internal investigations that uncovered issues relating to alleged financial misappropriation and abuse of authority.
According to CIG Motors, the findings revealed conduct that fell significantly below its governance, compliance, and ethical standards, necessitating decisive action at the senior management level.
What the company is saying
CIG Motors, the operators of the Lagride e-hailing platform, said its review uncovered serious governance concerns, including issues bordering on financial impropriety and abuse of authority, which were deemed incompatible with its corporate values and internal control framework.
As a result, CIG Motors said it had no option but to end the appointment with immediate effect.
- 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 said it is fully cooperating with the relevant authorities as the case progresses through appropriate regulatory and legal channels.
- It added that it would not make further public comments on the issue, noting that the matter is now before law enforcement agencies.
Arogundade reacts
Reacting to the company’s claims, the former Executive Director, Arogundade denied being sacked, saying he resigned.
“I resigned on 2nd of December by myself, after several months of asking questions on the diversion of funds by the chairman of CIG Motors,” Arogundade said in response to Nairametrics’ request for his comment.
According to him, the resignation also followed prolonged and fundamental disagreements “arising from serious concerns about the company’s growing debt profile, weak corporate governance practices, and persistent compliance failures.”
He said he had also expressed deep reservations about the company’s continued borrowing “without proper debt management structures.”
“I categorically reject any insinuation of wrongdoing on my part and reserve my right to take appropriate steps to protect my name, integrity, and professional reputation against further reckless or false publication,” he said.
What you should know
Last month, Nairametrics reported that the Lagos State Government-backed e-hailing platform, Lagride, secured a $100 million financing facility from United Bank for Africa (UBA) to expand its Drive-To-Own programme.
According to a statement from the company, the funding is structured to support the transition of about 3,500 drivers from daily rental arrangements into longer-term asset ownership and small business operations within the city’s transportation sector.
