Yes, but niacinamide should have blunted that. It would be interesting to see a study with different doses of niacinamide. Maybe high or lower doses would have had different effects on lipolysis.
Another option for increase FFA is the so-called re-partitioning of the fat from liver to peripheral tissues. Caffeine is known to do the same in lower doses - i.e. raise FFA due to getting fat out of the liver and into the peripheral tissues. In lower doses, caffeine also inhibits FAO, reduces glycogen, and leans out the liver. Both caffeine and niacinamide (in this study) dramatically increase UCP3 expression, which means niacinamide is thermogenic
I remember you replied to me at an old thread about sirt inhibition, that niacinamide inhibited just above certain level, but not under (nmol/l). So maybe you're right an the net effect depends on dose. Also, @tyw suggested at another thread that sirt is good on fat burning metabolism, while inhibition was preferred on glucose metabolism (If I understood right).