Nigel was freed by Sir Dan who was shrunk to the size of an insect by the Forest Witch. After being freed, Nigel implored Dan to rescue the other fairies from the ants' nest. He lead Daniel to the entrance of the ants' cave system, where he summoned his firefly friends to help light Dan's way through the darkness below. Finally, Nigel rewarded Dan with a chalice for saving all his friends.
In the original MediEvil, Nigel rewards Daniel with a free trip to the Hall of Heroes after Dan exits the ants' nest and without directly giving Dan a chalice. In the PS4 remake, he will reward Daniel with a chalice when the Ant Queen is killed, before Dan leaves the anthill.
↑ The MediEvil: The Game Prequel comic reveals Dan saved a fairy called Nigel, cousin to Griff and Noreen, “from the clutches of a belligerent ant-mob.” However, it does not specify which fairy Nigel was exactly. For the purpose of distinguishing the fairy with a speaking part from the others, this article assumes it is Nigel. This is subject to change as new information is revealed.