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Nigeria President Goodluck Jonathan has suspended the national side from international competition for the next two years.
The drastic action comes following his country's poor showing in South Africa, where Nigeria were knocked out in the group stage.
Lars Lagerback's side finished bottom of Group B, with just a solitary point from a draw with South Korea and defeats to Argentina and Greece.
Ima Niboro, a special adviser to the president, said: "Mr President has directed that Nigeria will withdraw from all international football competition for the next two years to enable Nigeria to reorganise its football.
"This directive became necessary following Nigeria's poor performance in the ongoing FIFA World Cup."
But the Nigerian president is sure to find himself in hot water with Fifa as world football's governing body always strongly opposes political interference in the sport.
This has been seen most recently with Fifa president Sepp Blatter warning France's government not to interfere with the affairs of the French Football Federation following the team's disastrous World Cup.
In previous cases, Fifa have suspended a national association where governments have intervened in the running of the game.
Regarding the Nigeria situation, Fifa said in a statement: "We have no official information on this matter. However, in general, FIFA's position regarding political interference in football is well known."
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West Brom forward Peter Odemwingie has been left out of the Nigeria preliminary squad for the Africa Cup of Nations.
Strikers Peter Odemwingie and Obafemi Martins have been left out of Nigeria's squad for the Africa Cup of Nations.
Shola Ameobi understands Newcastle's fears over his Nigeria call-up, but says he could not ignore the opportunity.
West Brom striker Peter Odemwingie insists he has not retired from international football with Nigeria.
Newcastle could lose a striker to the Africa Cup of Nations after all, with Nigeria monitoring Shola Ameobi.