The Nigeria Football Federation (NFF) will fine coach Sunday Oliseh US$30,000 for his extraordinary eight-minute video rant over the weekend.
Oliseh looks set to consult with his lawyers about contesting the sanction.
The 41-year-old posted a video on his own website to hit back at what he called the “insanity” of his critics.
He had come under pressure after Nigeria failed to get past the group stages of the African Nations Championship (CHAN) in Rwanda.
The coach has since apologised to the NFF for his outburst aimed at the Nigerian media as well as his vociferous former international teammates.
“When I spoke of critics I did not mean the general public of Nigeria! I would never dare refer to my beloved country men as insane!” Oliseh published on his Twitter account.
In another Tweet he said: “How dare I insult 170 Million people who I love and have shown me so much love. Please forgive the error of editing! God bless you all.”
The country’s sports minister, Solomon Dalung and NFF boss, Amaju Pinnick, met in the capital, Abuja on Tuesday to discuss the embarrassing saga.
The former Nigeria captain, who succeeded Stephen Keshi as coach in July, has seen his reign in charge of the three-time African Champions blighted by controversies.
Some high profile players have decided to retire since he took over as coach including goalkeeper Vincent Enyeama – Nigeria’s most-capped player – who quit after he was replaced as captain.
Two weeks later, striker Emmanuel Emenike also announced his retirement from international football.
Oliseh, unpaid for five months, had also gone public with the money problems affecting his team during the CHAN tournament to the embarrassment of his employers.
Nigeria faces seven-time African champions, Egypt in back-to-back 2017 African Cup of Nations fixtures next month.
They are two points behind group leaders Egypt after two rounds of matches with only group winners guaranteed automatic qualification to the tournament in Gabon.
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