Nigeria lost its final FIFA U17 World Cup group B game 2-1 against Australia on Friday at the Estadio Bezerrão, Brasilia.
The Eaglets entered the game on the back of perfect win record in the previous two group matches, and had already booked their spot to the second round.
But with qualification and pride on the line the Joeys went on to record their first of the competition and also first win over the Eaglets after seven meetings at this stage.
Australia took the lead in the 14th minute courtesy of Noah Botic after a quick counter attack.
Olawale restored parity for Nigeria in the 21st minute and set Nigeria for another impressive come back.
But Australia will regain the lead after Romanian Referee István Kovács awarded them a penalty, and Botic converted for his brace.
The Eaglets tried to level things but the Australian held on to secure their first victory of the tournament.