Yes, dryness and peeling are very common side effects of Nax-B gel, especially in sensitive areas like the creases of your nose. To manage this, apply a gentle, fragrance-free, non-comedogenic moisturizer (such as CeraVe, Cetaphil, or Neutrogena Hydro Boost) daily. For now, avoid applying the gel directly to the sensitive skin around your nostrils. You can also reduce Nax-B application to every other night until your skin builds tolerance. If the irritation, redness, or peeling becomes severe, temporarily stop using the gel and consult your dermatologist.