LAGOS, Nov 9 – 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 Sokoto-Badagry Superhighway, a planned 1,290-kilometre dual carriageway connecting northern Nigeria with the country’s Atlantic coast, according to a statement published on the bank’s website.
The project is expected to strengthen the movement of goods and people across Nigeria, improve connections between major economic centres and support regional trade links across West Africa. The highway will span seven states, linking Sokoto in the north with Badagry in Lagos State, while connecting two major Trans-African Highway networks.
Deutsche Bank acted as the sole mandated lead arranger for the nine-year Commodity Murabaha financing facility. The transaction combines Islamic finance with credit insurance provided by the Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC), a member of the Islamic Development Bank Group.
The facility benefits from an ICIEC Non-Honouring of Sovereign Financial Obligation policy, which provides credit protection against the risk of a sovereign failing to meet specified financial obligations. The structure combines Shariah-compliant financing with multilateral credit insurance to support long-term funding for strategic sovereign infrastructure investment.
“Large-scale infrastructure requires long-term financing solutions tailored to the needs of sovereign clients. By combining an Islamic financing structure with credit insurance from ICIEC, this transaction demonstrates how innovative financing can help enable major infrastructure projects in Africa. We value ICIEC’s support and are proud to support Nigeria on this important project,” said Maryam Khosrowshahi, Chair Global SSA, Head of Sub-Saharan Africa Coverage and CEEMEA Sovereign DCM.
The transaction highlights the use of Islamic finance and multilateral risk mitigation in structuring large-scale infrastructure funding. For Nigeria, the proposed highway is intended to improve connections between inland markets, coastal trade gateways and regional transport networks.
The Sokoto-Badagry corridor forms part of Nigeria’s broader infrastructure ambitions to improve national transport connectivity and facilitate the movement of agricultural produce, industrial goods and other commercial traffic across the country.
For Deutsche Bank, the arrangement also reflects its Global Hausbank approach, which combines sovereign financing expertise, Islamic finance capabilities and risk management solutions through its international network and regional coverage.
The $516.3 million facility supports the first section of the proposed highway. The financing announcement does not specify the construction timetable, the full project cost or the financing arrangements for the remaining sections.
