The Super Falcons were thrashed 3-0 by two-time world champions Germany in a Round of 16 match at Stade des Alpes.
It means the African champions will now depart, after only one win at the tournament – a 2-0 win over South Korea in the group stages.
But Dennerby was full of praise for his players, although he admitted there is still room for improvement.
“I think we showed the whole world that Nigeria have a team that has improved a lot.
“Of course, you’re not satisfied to go out but you also have to recognise where we came from – and we’re just not ready yet.
“It’s important to play high-level teams like Germany because the players can see that even the smallest mistakes get punished.
“But the second half was really good and now we just need to focus on improving and using all the FIFA dates to play matches.
“We will need to keep working hard for the future because we have some really talented players back in Nigeria,” Dennerby told the media.
