The goals got Nigeria out of jail, after they had dominated without managing to find a way past their opponents.
A goalless draw would have seen them eliminated on a fair play system, with holders Zambia the side set to profit.
Moses opened the scoring from the spot after he was fouled by defender Alula Girma in the 80th minute.
The winger calmly sent Bancha the wrong way to delight vociferous Nigerian fans.
Moses earned the second penalty when he was brought down by goalkeeper Sisay Bancha, who was sent off.
The patient Moses slotted past midfielder Addis Hintsa, who was forced to be a stand-in goalkeeper.
Two-time winners Nigeria have a date with tournament favourites Ivory Coast in the quarter-final on Sunday.
Coach Stephen Keshi: "It was a tough victory but we deserve it."
"Ivory Coast should also be afraid of Nigeria because we are back in the competition a stronger side."
Highlights: http://www.footytube.com/video/ethiopia-nigeria-can-orange-2013-29-01-2013-155595?ref=wv_relbox
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