Sanctions imposed on Lagos Islanders, Dodan Warriors and Union Bank have been lifted by the Nigeria Basketball Federation (NBBF).
This means the clubs are free to participate in the 2018 basketball league season.
The Atlantic Conference clubs were banned for participating in an illegal league in 2015.
NBBF President Musa Kida said the body took the decision because due process was not followed in suspending the teams.
He said the sanctions, which dated back to 2016, were not in accordance with any laid down domestic or Fiba rules.
“We were able to establish that the decisions taken by the former board were not in the overall interest of basketball in Nigeria. It’s a strange practice all over the world where an accused is not summoned to defend his actions,” Kida stated in a statement.
“Obviously, their suspension affected the standard of the league. In the Atlantic Conference, you hardly find fans coming to the venues because of the standard of the league which dropped as a result of these decisions.
“There is need to start on a clean slate in order to continue our quest to change the face of basketball in Nigeria. As a board, we are determined to operate and lead with the best interest of the game at heart.
“Any decision we are going to take will always be in the overall interest of all stakeholders. We will definitely operate with a human face.”