James was sent off for her foul on Alozie in the 70th minute in their Round of 16 match.
The referee had initially brandished a yellow before she was advised to consult the VAR on-pitch monitor.
The Super Falcons held the Lionesses to a goalless but England won the game on 4-2 penalty shootout after extra time.
However, after the game, a check on FIFA rules by our correspondent revealed that James has played her last game of the World Cup as dismissal for violent conduct comes with a three-match suspension.
FIFA rule states, “A player will be suspended for at least three matches for violent conduct; at least three matches or an appropriate period of time for assault, including elbowing, punching, kicking, biting, spitting or hitting an opponent or a person other than a match official.”
Meanwhile, the Lionesses have a maximum of three fixtures to play as they only qualified for the quarter-finals.
Contact: [email protected]