Gernot Rohr’s side finished 8th in the continent with 616 points, according to the assessment posted by the world football governing body.
The Super Eagles did not play a single competitive game in December, their last being the 2018 FIFA World Cup qualifier against Algeria in Uyo last month.
Meanwhile, Argentina finish 2016 on top of the FIFA World Ranking, earning the accolade of "Team of the Year."
La Albiceleste won 10 of their 15 games in 2016, losing three times and drawing twice, with one of their three losses coming in the continental showpiece on penalties to Chile in June.
France was named "Mover of the Year," after gaining the most ranking points. Didier Deschamps' team won 13 of their 17 games and drew three -- their only defeat being to Portugal in the final of Euro 2016.
The next FIFA World Ranking will be published on Thursday 12 January 2017.