Deutsche Bank has arranged a $516.3 million financing facility for Nigeria’s Federal Ministry of Finance to support the design and construction of the first section of the proposed Sokoto-Badagry Superhighway. Announced by the German financial institution on October 28, 2026, the arrangement marks a significant financing step for one of the Federal Government’s major road infrastructure projects. The planned dual carriageway is designed to connect Sokoto in north-western Nigeria with Badagry in Lagos State, spanning seven states and providing a major transport corridor between the country’s northern and southern regions. According to Reuters and BusinessDay, the 1,290-kilometre highway is expected to improve the movement of people and goods, strengthen domestic connectivity and support trade links across Nigeria and West Africa.
Deutsche Bank acted as the sole mandated lead arranger for the nine-year facility, which is structured as a Commodity Murabaha transaction in accordance with Islamic finance principles. The financing is supported by a Non-Honouring of Sovereign Financial Obligation insurance policy issued by the Islamic Corporation for the Insurance of Investment and Export Credit, a member of the Islamic Development Bank Group. The policy covers 95 per cent of the outstanding principal and profit under the facility, providing credit protection for the transaction. Maryam Khosrowshahi, Deutsche Bank’s Chair of Global Sub-Saharan Africa, Head of Sub-Saharan Africa Coverage and CEEMEA Sovereign Debt Capital Markets, said the structure demonstrates how Islamic financing and multilateral credit insurance can be combined to support complex sovereign infrastructure projects.
The financing follows legislative steps taken earlier in 2026, when President Bola Tinubu sought National Assembly approval for a $516.3 million facility from Deutsche Bank to fund sections of the superhighway. The House of Representatives approved the request in April, with the financing covering the initial phases of Section One. While the arrangement provides a funding framework for the first section, it does not represent financing for the entire proposed highway. Its broader economic significance will depend on the successful execution of the project, including transparent procurement, effective construction management and the delivery of infrastructure capable of reducing transport costs, improving access to markets and strengthening trade across the country. For Nigeria, the Sokoto-Badagry corridor represents an ambitious investment in national connectivity, with the potential to link agricultural and commercial centres to wider regional transport networks.
