Balogun has been used off the bench since joining from the Gunners in a deal worth up to £34million, scoring once in two substitute appearances, before being named in the starting line-up on Friday night.
The 22-year-old American scored a remarkable 21 goals for Reims last season but that form was nowhere to be seen at the Louis II Stadium as he joined a rare group of players to miss two penalties in one game.
Nice goalkeeper Marcin Bulka saved Balogun’s first poor penalty in the 11th minute and the American then missed his second of the match on 55 minutes.
Balogun becomes just the second player to miss two penalties in the same Ligue 1 game, according to Opta, and had to watch on as Jeremie Boga went on to win the Riviera derby with a goal in injury time.
Monaco have now been leapfrogged by Nice into top spot in Lique 1, dropping down into second place ahead of Saturday’s action.