Step 1: Niacin is used to lower LDL and triglycerides and to raise HDL, but it has an unwanted action on carbohydrate handling.
Step 2: It promotes insulin resistance and reduces glucose tolerance, which pushes fasting and post-meal glucose upward.
Step 3: In someone who already has diabetes, this hyperglycemic effect can destabilize control, so niacin is used cautiously or avoided.
Step 4: The cause therefore is its tendency to raise blood glucose, not scleroderma, injection issues, or drug metabolism changes.
\[\boxed{\text{It increases blood sugar levels}}\]