Fifa has ordered the Benin Football Federation (FBF), currently suspended from global football, to pay their former coach Didier Olle-Nicolle €153,000 euros for breach of contract.
The Frenchman was sacked in November 2014 after just eight months into his two-year contract as national team manager.
Olle-Nicolle, 54, said he was unfairly dismissed and reported the issue to Fifa, who ruled in his favour this week.
"The FBF must pay €39,000 euros in salary arrears and €153,000 euros as a 'compensation for breach of contract'," according to a letter sent by Fifa to both parties.
The FBF are expected to pay the fine by next month.
Appointed coach of the Squirrels in March 2014, Olle-Nicolle's contract was terminated in November, ostensibly for poor performance.
His immediate task was to guide Benin through the first and second knockout rounds of qualification for the 2015 Africa Cup of Nations.
But Malawi stunned the Squirrels on penalties in the second knockout rounds to reach the group stages of qualification.
Benin are currently serving a Fifa suspension from world football after a court ruling in the country blocked upcoming elections.