According to reports, the West African nation are facing financial constraints and after three defeats in three games so far, have decided not to continue.
In accordance with the rules, all the points gained from games including Chad will now be annulled. This leaves Nigeria two points behind Egypt, ahead of their clash on Tuesday night.
The Eagles, who did not qualify for the last edition in 2015, had been in the race to qualify as one of the two best runners-up. But CAF has now confirmed that only the top-placed team will qualify from Group G.
Tanzania are currently third in the group.
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