They did that when you got a haircut while I was in Iraq. I mean, it was not with a Bic lighter, but they did it. The guy used a large Q-tip type thing that was soaking in a liquid (makes me wish i woulda asked what it was), he lit it ablaze and kinda wiggled it around by your ear and did the little rubbing it out thing like the guy in the video. It didn't hurt since the fire was not there long enough to burn you and it really did do the job quite well. The first time i went for a hair cut though, I was a little freaked out when he lit it on fire, not what you expect when you go to a barber.
He never offered, nor did I ask about doing a nose. I wonder if it would work though? just don't inhale while you do it.