Nicholls was originally only included in the touring squad as a backup batter but was thrust into the starting lineup after legend Kane Williamson announced his retirement.
When he took the field against England at the Oval, it had been over a year since his last Test appearance but he still played a key role in helping New Zealand win the match and level the series with an excellent knock of 121 in the first innings.
"Well, I mean, the reality was Henry was our back-up batter in the Test squad," Walter explained.
"At the time of his selection in the squad as a back-up batter there may have been somebody to ask questions, I don't think anyone could ask the questions based on the performances that Henry had put in when he'd gone back to domestic cricket.
"Ultimately, it's a lesson for anyone that there's always going to be these disappointments of being left out of the team. But all you can do is just go back, work hard, put some runs on the board, put performances on the board, win games for your team.
"Then hopefully, things play their part and you end up getting another chance. And again, I think Henry wouldn't have wanted to get his opportunity through Kane's retirement because that was in itself a loss for the team.
"However, he's still a highly experienced guy with lots of performance under the belt, and could come in on the back of strong performances domestically, earning his spot back and taking that No. 3 spot. So certainly I won't be giving that No. 3 to anyone else because he's deserved it."
Nicholls reveals that while he never gave up on a return to the New Zealand team after being dropped, he was also content to just enjoy his cricket no matter where he was playing.
"The focus for me when I got left out was to go back and keep enjoying my cricket. I sort of had the perspective: 'if you come back that would be great'," Nicholls said.
"Even if I wasn't, I would have still been content with it. [I'm] very pleased to be back and [it was] a fun series, albeit it feels like a little bit ago. The reception that we had today [in Auckland], I know how important it was for everyone back here."
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