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Fifa has fully lifted the ban on Nigeria after court action against the federation's officials was halted.
The Nigerian Football Federation (NFF) was banned three weeks ago for various reasons, including political intrusion.
The ban was provisionally lifted few days later which allowed them to play their Nations Cup qualifier in Guinea.
The withdrawal of the legal action by the players' organization (NANF) allowed the NFF to function again, prompting Fifa to reverse the ban.
"Fifa decided to lift the suspension on the Nigeria Football Federation (NFF) after receiving confirmation that the court actions against elected members of the NFF had ceased and that they could now work without hindrance," Fifa said in a statement on Friday.
Fifa had initially imposed the ban for what it called "government interference" in the running of Nigerian football in the wake of the national side's early exit from the World Cup.
But it suspended the ban provisionally this month until October 26 after some steps were taken, notably allowing the country to play a 2012 Nations Cup qualifier in Guinea.
Acting NFF secretary-general Musa Amadu said Tuesday that the withdrawal this week of the last obstacle, a court case by National Association of Nigerian Footballers (NANF), allowed the federation's board to function again.
Fifa rules protect its members' independence, and it said earlier this month that Nigerian officials had been compromised by government interference and legal action brought by NANF.
Fifa eased its stance after Amadu was reinstated as the federation's acting general secretary.
He previously had been forced to step down on the instructions of the government-run National Sports Commission.
Fifa also objected to the Nigerian sports minister starting the domestic league program without relegation from the previous season.
But the problems associated with the league has been resolved with the new season expected to kick off next month.
Source: bbc
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