The Super Eagles have dropped from 50 to 51 in the December world rankings released by FIFA on Thursday.
It is the second consecutive drop in the rankings for Russia 2018 World Cup-bound Nigeria. They dropped five places in the November rankings.
In the latest rankings, the Eagles have 640 points against the 671 points they had in the November. They are currently ninth in Africa.
FIFA docked Nigeria points for fielding an ineligible player Shehu Abdullahi in their World Cup qualifier against Algeria last month.
The game in Constantine ended 1-1 but FIFA awarded the Desert Foxes the full points.
The result did not affect the final standings with Nigeria already qualified for the World Cup.
Senegal, who were ranked 23rd, maintained their position. They have 884 points. Tunisia with 834 points and Egypt with 805 points also retained their second and third places on the continent respectively.
DR Congo remain fourth in Africa despite dropping three places with 740 points. They are now 39th in the world. Morocco, Burkina Faso and African champions Cameroon also retained the fifth, sixth and seventh place.
Ghana are now eighth after climbing a spot with 657 points. Algeria, who climbed six places to 58 are now 10th on the continent.
Nigeria’s Group D Russia 2018 opponents Croatia and Iceland retained their positions in the rankings. Croatia are ranked 17th while Iceland also remain 22nd in the world. Argentina remain fourth in the rankings.
The top 10 countries in the world are unchanged as World Cup champions Germany, Brazil, Portugal, Argentina and Belgium retained their spots. Spain remain sixth.
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