After getting off to a disappointing start in the World Cup - losing 2-0 to Croatia on Saturday, the Super Eagles will hope for a rather positive feat when they take on the Europeans on Friday.
A win against over Heimir Hallgrímsson's side would revive their hopes of progressing from Group D and the Atlanta '96 hero urges the players to 'talk to themselves' and give their all in Volgograd.
"The players know that they need to talk to themselves because they have lost the first game and they need to go all out to win against Iceland," Lawal told Goal.
"It will be difficult to break them because they play mass defence and mass attack. They don't have a special player but they are always playing as a team with discipline.
"I fear their game more than Argentina because the South Americans can underrate Nigeria. It's up to the players now to talk to themselves. There's nothing like fear again, we've lost one game and we need to win the remaining two games.
"It's going to be very difficult. All hope is not lost and we have to wait for the next result on Friday."
Nigeria will hope to reach the second round of the biggest football fiesta for the fourth time after feats at the 1994, 1998 and 2014 editions.