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Hello from JustAnswer.
Yes, it is OK to apply Bacitracin inside the nose, although it only should be applied in the lower portion of the inside of the nose, or the area that can be reached with your small finger. The medicine can actually be applied higher in the nose, but it is difficult for someone at home to safely apply a medicine higher in the nose.
It is also true that topical Bacitracin is only of limited potency, and many people with cellulitis of the nose will only improve with oral antibiotics, but it is OK to try the Bacitracin on the inside of the nose.
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