The Golden Eaglets lost their second game in the competition against Team Melli Javanan on Thursday
Nigeria U17 suffered a 1-0 defeat to Iran U19 in the Suwon Continental Cup in South Korea.
Reza Karamolachaab’s 79th minute strike handed silenced Manu Garba’s boy after a goalless first half.
The reigning world champions were hoping for redemption after crumbling 8-1 to England U20 team in their first game, but a momentary loss of concentration saw them bow to Amir Hossein Peyrovani’s side.
The Golden Eaglets will face hosts, South Korea in their last game of the tournament on Saturday.
Korea defeated England 2-1 to remain in contention for the top prize, with six points from two games.