Pirates, the kings of Africa in 1995, will host Namibian side African Stars in a first round, first leg tie at Orlando Stadium on Saturday (18h00), having hammered Light Stars 8-2 on aggregate in their tournament opener.
Bakgaga caused an upset by edging Absa Premiership leaders Bucs in the Telkom Knockout final on penalties last weekend, but Nyirenda holds Milutin 'Micho' Sredojevic's men in high regard.
"Pirates is highly tactical," Nyirenda said.
"They are also well coached by my big brother Micho and his assistants.
"Technically they are excellent. I have seen teams in this league ever since I came here five months ago.
"I think Pirates are looking more formidable and can go all the way in this African championship," concluded the former Zambia coach.
The Sea Robbers have been boosted by the return of midfielders Xola Mlambo and Marshall Munetsi, who were suspended for the 3-1 league win at Free State Stars on Tuesday, along with performance analyst Franck Plaine.