Otebo Oghenekaro and tournament top scorer with five goals bagged a brace as Nigeria scored all three goals.
The Warri Wolves midfielder put Nigeria infront 14 minutes into the from the penalty spot.Sixteen minutes later, Algeria were on level terms with Nigeria as a defensive blunder from the Dream Team's defence line saw Oduduwa Segun Tope put the ball in Daniel's net for an own goal.
Oghenekaro then scored Nigeria's second goal from open play to hand the Dream Team a first half lead.
As the second half clock ticked away, goalkeeper, Emmanuel Daniel proved that his heroics against host, Senegal was no fluke as he stole the night after he stopped a decisive spot kick from the Algerians as the game ended 2-1 in favour of his team.
Meanwhile, South Africa took the remaining Olympic spot with a 3-1 penalties win over hosts Senegal in the third place play-off match.
Goalkeeper Jody February proved to be South Africa's hero with three saves during the shootout and a penalty save in the regulation 90 minutes which had ended 0-0.
