The Spurs youngster has delighted Rangers fans with his pace and trickery in his first few appearances since joining them on a season-long loan deal last month, and Wallace believes that the sky is the limit for the 19-year old.
“Nathan’s right up there and I’ve seen players with great individual ability," Wallace told the Daily Record.
"Nathan is young," he added. "He’s come from a great academy who trust the manager here to get the best out of him."
“He’s in great hands working with great management and bunch of players," continued Wallace. "He’s going to learn every day… He’s going to improve and go back to Spurs pushing for a first-team spot.”
Oduwa was criticised for showboating in his first game, but Wallace has insisted the players are behind him and want to encourage further demonstrations of flair from the talented winger.
“Nathan is a confident player, technically very gifted, always with a step-over, a trick. We’d never want to stop him doing that,” said the 28-year-old.
“He’s got that in his locker and it’s a big part of his game. The performance he put in here was great.”
Can Nathan Oduwa make the grade at Spurs?
Tottenham head coach Mauricio Pochettino will be delighted by the reports he has received back so far, and should Oduwa maintain his form throughout the season, there will undoubtedly be calls for first-team involvement next year.
Oduwa’s task is a tough one made even more difficult by the recent arrivals of Son Heung-min and Clinton N’Jie.
Alex Pritchard has also been introduced to the first-team set-up and joins Nacer Chadli as the team's main wide options.
Two players whose futures are less secured, however, are Erik Lamela and Andros Townsend, and Oduwa may have half an eye on their spots next season.
Lamela has failed to produce anything near the quality that was expected of him, while Townsend remains a frustrating and inconsistent figure.
Should Oduwa continue in the manner in which he has begun the season, then he will become impossible to ignore by Tottenham.