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The Swede became the first foreign manager to take charge of the English national side when he was appointed as Kevin Keegan's successor in 2001.
BBC: Eriksson holds Notts County talks
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Hiddink is the third Dutchman to take charge of a Premier League club after Ruud Gullit (Chelsea, Newcastle) and Martin Jol (Tottenham) and is the seventh foreign manager at Chelsea.
BBC: Chelsea confirm Hiddink as coach
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Mohammed revealed his decision was influenced by the fact that Nigeria struggled to pay the salary of its last foreign manager, Dutchman Jo Bonfrere, who was sacked in 2001 after a string of poor results in qualifying matches for the 2002 World Cup.
BBC: SPORT | Football | African | Nigeria stall Robson plan