The decision was taken on Monday after several members of the Nigeria Football Federation (NFF) were hauled before the law courts.
Fifa rules prohibit any government intervention with its members.
"The Fifa Emergency Committee decided today...to suspend the NFF with immediate effect on account of government interference," Fifa said.
"During the period of suspension, the NFF will not be able to be represented in any regional, continental or international competitions, including at club level, and also not in friendly matches," the Fifa statement added.
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