Badgers are a protected species, making it illegal to kill or trap them without a licence.
The council said an “extensive” licensing process was required before repair work could begin.
A notice on North Lincolnshire Council’s website said: “College Road, East Halton has been closed with immediate effect after engineers confirmed it is no longer safe for motorists.
“Parts of the road have sunk by almost 2cm and continues to move – with a serious risk of collapse if traffic keeps using it.”
It adds: “Specialist surveys have revealed widespread underground damage caused by wildlife activity tunnelling beneath the carriageway. The extent of the voids means the ground beneath the surface can no longer be trusted.”