France scored twice in the last 11 minutes in Brasilia on Monday to reach the quarter-finals at their expense.
The 52-year-old was appointed Nigeria boss in 2011 and helped them become African champions two years later.
Nigeria captain Joseph Yobo also retired from international football following their exit.
Fenerbahce's Yobo, 33, scored a late own goal after Paul Pogba's header had broken Nigerian resistance.
Coach Keshi becomes the sixth manager to leave his job during the World Cup, following the departures of Honduras's Luis Suarez, Iran's Carlos Queiroz, Japan's Alberto Zaccheroni, Italy's Cesare Prandelli and Ivory Coast's Sabri Lamouchi.
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