Niacin is a water-soluble vitamin, also known as vitamin B3. The term niacin refers to nicotinic acid and nicotinamide, which are both used by the body to form the coenzymes, nicotinamide adenine dinucleotide (NAD) and nicotinamide adenine dinucleotide phospate (NADP). Neither form is related to the nicotine found in tobacco, although their names are similar Normally, the body manages to absorb enough niacin from foods to carry out basic functions, working on the cellular level to keep the digestive system, skin and nerves healthy. This vitamin is also critical to releasing energy from carbohydrates and helping to control blood-sugar levels. Interestingly, the body also synthesizes niacin from tryptophan; an amino acid found in eggs, milk and poultry.