Nigerian team media officer Idah Peterside said on Sunday Taiwo had suffered a sharp pain after stubbing his foot while firing a long range shot just wide of the Argentine goal during the second half of the match at Ellis Park.
He was taken off in the 75th minute of the 1-0 defeat, prompting concern he had suffered a serious injury and could be out for the tournament.
"He's fine and took part in a light run for the players who played in yesterday's game," Peterside told Reuters.
Taiwo, 25, regained his place at left back for Nigeria's first match of the World Cup after being dropped during January's African Nations Cup finals.
A moment's lapse in concentration gifted a goal to Gabriel Heinze in the sixth minute and ultimately consigned Nigeria to a 1-0 defeat in Saturday's game against Argentina.
The players were left with plenty of positives from the game, however, after fine keeping from Vincent Enyeama and stubborn defending all round kept the goals down and a powerful attack caused Argentina plenty of defensive problems.
Nigeria next play Greece in Bloemfontein on Thursday, with the final match on June 22 against South Korea, who beat the Greeks 2-0 in their first game on Saturday.
"To hold a team like Argentina to 1-0 was a good job," striker Yakubu Aiyegbeni told reporters. "The goalkeeper was unbelievable and without him it would have been three or four goals."
Swedish coach Lars Lagerback will have to decide whether to stick with Chinedu Obasi on the left side of attack, after he caused problems for Argentina early on only to tire towards the end of the half.
The experienced Peter Odemwingie replaced Obasi after an hour and could be an option from the start against Greece, with Obafemi Martins, another second-half substitute, also pushing for a starting place.
