But Nigeria were slow to get out of the blocks and became the first team not to have a shot in the first half of a World Cup game since South Korea against Algeria in Brazil four years ago.
Group D is now set for a blockbuster finale on Tuesday when Iceland take on already-qualified Croatia in Rostov and Nigeria face Argentina in St. Petersburg.
Musa showed superb technique to fire Nigeria ahead on the half-volley before the Leicester player rounded keeper Hannes Thor Halldorsson to make it 2-0.
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Coming on the back of their impressive draw against Argentina in their opening match, Iceland underlined their intentions for the match early on, Alfred Finnbogason testing Francis Uzoho with a long-range free kick only two minutes into the game.
Gudmundsson was substituted midway through the second half of Iceland's surprise 1-1 draw with twice world champions Argentina on Saturday.
Nigeria coach Gernot Rohr has hinted that the speedy Ahmed Musa may play from the start to bolster their attack and stretch the play across the field.
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Queiroz and Renard were involved in a touchline scuffle, quickly resolved, before the real drama arrived in the 95th minute. But Khabar Varzeshi, a sports news website, said the plan had been called off at the last minute without any explanation.
Nigeria, with captain John Obi Mikel sitting deeper in midfield than against Croatia, slowly worked their way into the game with Victor Moses a constant threat on the right flank. "It gave us more space and the speed proved decisive for us", Rohr said.
Ndidi suffered a hamstring injury in the tail end of the 2017-2018 campaign, but was declared fit to attend his first World Cup after going the full ninety against the Czech Republic in a pre-World Cup friendly.
Iceland must now turn their sights on Croatia who ended the island's 2014 World Cup dream in a playoff, and the relationship between the sides on the field has often been tempestuous.
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Despite their battling display, Morocco will rue the unforgivable defending that made all their subsequent good work irrelevant. Bernardo Silva chose to take a short corner with the help of Joao Moutinho , who crossed a teasing ball to the six-yard box.