Nwakali is understood to have signed a five-year deal with the Gunners back in March and was due to link up with his new club this summer, although the move is yet to be officially confirmed.
The 18-year-old Nigerian has been tipped as a star of the future, and Kanu believes that the youngster can fare even better than he did at the North London outfit.
"He is going to Arsenal at such a young age which means he could stay there longer than I did and develop properly, above all he could win more laurels than I did during my time at Arsenal," Kanu told OwngoalNigeria.
"I have high hopes on him succeeding at Arsenal, he is so talented for his age and he has a very good sense of listening, he will succeed at Arsenal, I have no doubt about that in my heart."
Nwakali was named the player of the Under-17 World Cup last year having helped Nigeria to the title.