The move Friday frees up a roster spot for a Nets team that has lost a season-high four straight games while playing without injured starters Kyrie Irving and Caris LeVert. LeVert is expected to return to the team's lineup for Saturday's game against the Raptors, sources told ESPN's Adrian Wojnarowski.
Nwaba was injured Dec. 19 in a loss at San Antonio and underwent surgery the next day in New York.
He averaged 5.2 points and 2.3 rebounds in 20 games after signing with the Nets in July.
The Nets also waived forward Henry Ellenson, who was on a two-way contract and had spent more time with their G League affiliate.
Information from The Associated Press was used in this report.