The journey of the Super Sand Eagles came to an end in the Bahama following a penalty shootout defeat to Asian side Iran.
The game had ended 4-4 during regulation time but the Nigerian team lost the penalty shootout 2-1.
Both team had won one and lost one going into the final Group B match with a win the only result that will send them through into the quarter-final.
Iran began the game better than their West African counter-part as they showed good technical understanding of Sand Soccer and deservedly took the lead Mohammad Ahmadzadeh but Nigeria hit back through Victor Tale.
Mohammad Mokhtari restored the lead for the Asians but Emmanuel Ohwoferia ensured that Nigeria stayed in the game with an equalizer.
Ahmadzadeh and Mokhtari completed their brace while Godspower Igudia and Bartholomew Ibenegbu scored to end it 4-4 at full-time and take the game into extra-time.
There were no goals during extra-time but the Asian champions came out tops during the penalty shootouts with a 2-1 scoreline to send Nigeria packing from the 2017 FIFA Beach Soccer tournament.
Iran will now face Group A winners Switzerland in the quarter-finals on 4 May.
