Iwobi netted a brace as the Super Eagles beat Argentina 4-2 in a friendly game on Tuesday, November 14.
His second was a brilliant individual goal, nutmegging at the edge of the penalty box before smashing the ball past the Argentina goalkeeper.
Wenger believes a goal like that shows Iwobi has the potential to become a good goalscorer.
"I think Alex is a player who grows regularly," Wenger told London Football.
"This season, for the first time he's adding what we want from him - goals - to his qualities, which are exceptional.
"Overall, I think he has a good attitude and now he becomes efficient in front of goal as well. This kind of experiences like the one against Argentina will help him even more to grow.
“His finishes against Argentina showed composed finishing of a guy who knows what he's doing, and with his left foot as well.
"He's worked a lot on his finishing and he's improved a lot. Compared to one year ago, the difference is unbelievable.
“There's still much to come from him. I want him to become a better defender as well. You want him to make better quality receptions in the final third, better runs."
Iwobi's goal target
Iwobi was given a target of 10 goals this season for Arsenal and has already scored one.
He has found better form in front of goal for the Super Eagles, scoring three so far this season, his winner against Zambia which sent Nigeria to the 2018 FIFA World Cup and the brace against Argentina.