Nigeria defeated Benin 2-1 here on Wednesday to set up an African Nations Cup quarter-final showdown with defending champions Cameroon.
The Super Eagles finished second in Group D with six points from two matches while Morocco, who drew 1-1 with South Africa in the other game of the night, topped the group with seven points.
South Africa, champions in 1996, failed for the first time to go past the first round as they finished third with four points.
"It was a tricky encounter and we needed to win to stay in the competition," said Nigeria coach Christain Chukwu.
"We were therefore very cautious and did not underrate Benin and I'm happy it worked out for us."
Skipper Jay Jay Okocha was also happy with the outcome.
"Benin had nothing to lose and so it was a difficult game for us. But we played at full capacity and the important thing is that we are through to the quarter-final," said Okocha.
Benin coach Cecil Jones Attuquayefio said he was delighted to be a part of the tournament as his team have learnt a few lessons which they hope will stand them in good stead in later years.
"We are happy to have been a part of this competition. The lessons we have learnt here will only help us when we go back home to rebuild the team," he said.
Nigeria's clash with neigbours Benin was widely seen as an easy stroll for the two-time winners but it was not exactly so as the Squirrels stood up to their more illustrious opponents for most of the game.
Garba Lawal finally broke the Benin resistance after 34 minutes when he stabbed home the ball from a goalmouth scramble to set Nigeria on the road to the last eight.
The lively John Utaka doubled Nigeria's advantage in the 75th minute when he punished a mistake by defender Anicet Adjamossi inside the six-yard box, rounded the goalkeeper and fired home into an empty net.
Benin pulled a goal back in the dying minutes of the match when Germany-based Moussa Latoundji connected home from a throw-in taken from the right flank.
Both Utaka and Okocha threatened the Benin goal at the re-start. First, the forward, who plays for French club Lens, saw his 57th minute effort miss by a few metres and two minutes later Bolton star Okocha's shot flew over the bar.
But despite Nigeria's dominance Benin occasionally troubled the Eagles goal. Guingamp Ouamar Tochomogo let fly with a free kick which Vincent Enyeama blocked on 64 minutes.
The Super Eagles had kicked off the game on a bright note but the Squirrels tested Enyeama's reflexes as early as the sixth minute through Wassiou Oladipupo.
However, Nigeria continued to mount pressure, getting two corners within the first ten minutes as Benin gradually fought back to match their opponents skill for skill and brawn for brawn.
The hardworking Lawal blasted over the bar from the edge of the box on 18 minutes before Okocha forced goalkeeper Maximes Agueh to parry his own effort away for a corner.