Liverpool have signed six players so far this summer.
The 24-year-old centre-back joined Liverpool this summer after signing a pre-contract agreement back in January.
The former Schalke defender has never played his club football outside of Germany, however, and Nicol does not know whether the Cameroon international will cope with the pressure expected of him in the Premier League.
But if pressure does not faze him, Nicol says that Matip could potentially become the type of defender Liverpool have needed for a number of years.
"I'm not quite sure about this one," Nicol said to ESPN about Matip. "I don't think he had the pressure on him in the Bundesliga in the same way he'll have in the Premier League.
"But if he can handle it, then he's got the talent and the technique to come out the other side and be the centre-back Liverpool have needed for three, four or five seasons."
Matip will need a fast start to life in the Premier League, simply because Liverpool do if they have serious hopes of winning the title.
The Reds have a tricky start to the campaign; visiting Arsenal in the curtain raiser on August 14, before returning to North London two weeks later to face Tottenham Hotspur.
Liverpool boss Jurgen Klopp has signed six players this summer, including Sadio Mane, Loris Karius, Ragar Klavan, Georginio Wijnaldum and former Arsenal goalkeeper Alex Manninger.
They have spent the guts of £65 million - with Mane (£34m) and Wijnaldum (£23m) representing the bulk of that figure.