Both City and Napoli will look to get their Champions League campaigns off to a good start when they face off on Wednesday evening, but the Citizens are heavy favourites after a brilliant start to the Barclays Premier League season.
Argentinean hitman Sergio Aguero is fresh off a hat-trick at the weekend against Wigan, while his Bosnian strike partner Edin Dzeko bagged four in their previous league game against Tottenham.
In addition, City have David Silva and Samir Nasri pulling the strings from midfield, while Mario Balotelli and Carlos Tevez are available in reserve.
However, Napoli's also boast a considerably dangerous attack in the trio of Ezequiel Lavezzi, Edinson Cavani and Marek Hamsik.
And Lippi, who led Italy to the World Cup in 2006, believes the Napoli strike force will pose a threat or two to City on Wednesday.
"Undoubtedly, it is the most difficult group of all, but Napoli must have faith in their chances," Lippi told Tuttomercatoweb.
"The club have reinforced well in the transfer window and are growing.
"Their inexperience at this level can be countered with the right amounts of enthusiasm and ruthlessness.
"City's attackers are very strong but Napoli's strike force is equal to them."
While Lippi did admit City will pose stern opposition, he refused to rule out a Napoli victory on Wednesday.
"Manchester City are a great team, leading the Premier League, but Napoli at this time are also considered a great squad.
"It will be a difficult game but not impossible, even if City are one of the most feared clubs in Europe at the moment."
Group A's other tie on Wednesday will see German giants Bayern Munich take on La Liga outfit Villarreal.