The result leaves the five-time FIFA U-17 World Cup champions without a win after two matches, following their opening 3-2 loss to Tanzania.
Coach Uwejamomere Eboboritse’s team have now conceded seven goals and scored four, exposing defensive weaknesses the coaching staff will look to improve.
Despite creating attacking opportunities, Nigeria struggled to contain a clinical Australian side that punished mistakes.
The Golden Eaglets will conclude their campaign against hosts China on Saturday as they continue preparations for the WAFU B U-17 Championship in September.
The tournament is part of their build-up for the Africa U-17 Cup of Nations qualifiers.
