Ismaila Abubakar, Permanent Secretary, Ministry of Youth and Sports Development, made this known during a conference in Abuja on Thursday, Channels Tv reports.
According to Abubakar, the latest decision is based on a letter of appeal from the Nigeria Basketball Federation (NBBF), signed by Mr Musa Kida.
He said intervention by concerned stakeholders, former Nigerian international basketball players and well-meaning Nigerians to seek solutions to the issues triggered the decision.
Earlier report has it that President Muhammadu Buhari had in May approved the withdrawal of Nigeria from all international basketball competitions.
Sunday Dare, Minister of Youth and Sports Development, who confirmed the development had said the suspension will last for two years.
He had said the development would allow the government to concentrate on efforts to revamp the sport.