Sunday's fixture at the Cairo International Stadium will be the ninth meeting between the Super Eagles and the Desert Foxes at the Africa Cup of Nations.
In their run to last four stage, Gernot Rohr's men fought back from a goal deficit to defeat reigning African champions Cameroon 3-2 in the Round of 16, and the encounter was followed by their quarter-final outing against South Africa.
During Wednesday’s game against Bafana Bafana, William Troost-Ekong's scored a late winner after Bongani Zungu cancelled out Samuel Chukwueze's opener.
Djamel Belmadi's Algeria team side are unbeaten at Afcon 2019 and Iwobi admitted the match feels like a final for the Super Eagles.
"We know it is almost like a final, Algeria one of the best teams in Africa with quality players but also we have confidence and after the game against South Africa we have more passion and we're looking forward to the game," Iwobi told Goal.
"We have to play together, stick together and keep fighting. I am sure if we do the same thing that we did against Cameroon and South Africa we have a good chance to win."
Nigeria have played five matches in Egypt and their only defeat was a 2-0 loss to Madagascar in the group stage.
When quizzed about his hardest game at 2019 Afcon, the Arsenal ace said: "Cameroon, considering we were losing before winning, it wasn’t only physical but mentally it was a very big challenge for us and to overcome that loss and win was very good for us."
The Super Eagles have received unflinching support from Nigerians in Egypt since they kicked off their campaign in Alexandria three weeks ago.
Aside from the support from home, Egyptians have also stood behind Gernot Rohr's side and Iwobi is happy about it.
"They are crazy with the team. They were singing and dancing, they help us a lot," he added.
"We also see Egyptian fans support us and encourage us to perform better so it is a great feeling when they saw them supporting us."