A nug, if memory serves, is a slang term for a marijuana bud. Derives from nugget, a valuable chunk of metal. The female cannabis plant produces buds, which my dope-fiend friends tell me is where all the good stuff is; a particularly “tasty” one is referred to as a nug.

So. A nug smuggler, then, would be a person who clandestinely transports these marijuana buds—or, by extension, marijuana in any form—from place to place. Presumably to get them from them who grow them to them as want them for smoking purposes.

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