The former Celtic striker believes that Mark Warburton will take the Gers back to the Premiership.
Mark Warburton's side began the season exceptionally, winning their first 11 games in the Championship. However, a defeat to Alan Stubbs' side has brought Hibs right into the title picture. But Nicholas doesn't expect the Gers to slip up.
"I think Rangers will win the league. Warburton has handled the situation pretty well and Hibs have been sensational," he said.
"They had a £7m budget and that should be enough to win the title for me," he added.
The defeat to Hibernian at the start of November not only ended Rangers' flawless start, but it also allowed the Easter Road outfit to continue their own unbeaten run, that now stretches 12 games.
Although the pair have already created considerable daylight between themselves and third place Falkirk - and will be confident that they will be in a strong position, even if they have to settle for a play-off place - they will both be aware that neither was able to succeed in the play-offs last year.
Therefore, they will desperate to win the league, otherwise they face having their path to the top flight blocked by a current Premiership side.