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The Avatar found him in the prison there. Nico was planned to be the next human sacrifice in Raxos's mad plan to restore the Shrine of Sacrifice, and Nico had understandably something against this. Nico told the Avatar that his brother had already been sacrificed at the shrine. Thankfully, after restoring the shrine, Raxos lost all power and gave up the key to Nico's cell. Nico didn't believe Raxos could change, but gave the Avatar his thanks by giving him the Orb of the Moons, explaining how it works.
When meeting him later in Britain in his shop, he sold the Avatar reagents; with a discount, should the Avatar be a member of the guild of Buccaneer's Den.
- Altomar in Britain mentions that Nico is "shorts for something", and in addition, the game files reveal that the character's full name is meant to be Nicodemus. It is unclear however, if the writers were just reusing a name as they did with many other characters, or if they originally intended him to be the same Nicodemus from Ultima VI and VII.