This year's Cup Final will be played at the Teslim Balogun Stadium, named after the former striker, on August 26.
Balogun and the late Haruna Ilerika of Stationery Stores are to be honoured with posthumous awards.
Thunder Balogun won the Challenge Cup title seven times and coached the national team to the 1968 Olympic Games.
Ilerika, a former vice-chairman of the Lagos State Football Association, featured for Stationery Stores of Lagos in the championship.
Oluyomi Oluwasanmi, Secretary of the Local Organising Committee (LOC) for the final, says 14 legends would be honoured this year, with more to come on an annual basis.
"The essence of this honour is to appreciate the outstanding performance of some players who had featured in the Cup," he said. "There will be posthumous honours for those of them that had died while those alive will also be remembered.
"It is going to be an annual event featuring some of the players that have distinguished themselves since the inception of the championship in Nigeria. We are doing this to motivate the present crop of players that their efforts in the competition will not go unnoticed even after they had retired."
Former Rangers captain Christian Chukwu is among a stellar assemblage of former stars to be honoured.
The list includes Victor Oduah, Ismaila Mabo, Muyiwa Oshode, Christian Chukwu, Segun Odegbami, Sani Mohammed, Moses Kpakor, Alabi Aisien, Amodu Shuaibu, Peter Rufai and veteran sports commentator, Fabio Lanipekun.
"Every year, new set of former players who had taken part in the Federation Cup would be honoured during the final of the tournament in Lagos," Oluwasanmi said.