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The former Chelsea star last played for Nigeria at the 2018 World Cup in Russia and was not involved in the qualifying for this year’s Nations Cup.
"Mikel has met with coach (Gernot) Rohr in England and he has confirmed he will feature at the Nations Cup in Egypt," said a top team official.
The 32-year-old Obi, now with English Championship side Middlesborough, has won 85 caps and scored six goals since his full international debut in 2005 against Libya.
Experts said his experience and leadership would be invaluable to a squad that includes many players making their debut in this competition after Nigeria missed out on the last two editions.
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The tournament in Egypt is widely seen as the last hurrah for the player in international football.