Nikyu has been tasked with guiding the Makurdi club back to the Nigeria Premier Football League, NPFL.
The experienced tactician has managed several top Nigerian clubs, including Wikki Tourists, Plateau United, and Gombe United.
Lobi Stars were relegated from the NPFL in the 2024/25 season.
The Alia Boys narrowly missed out on promotion from the NNL last term.