The 20-year old arrives at the League One club ahead of Friday night's home meeting with Walsall in which he could make his Posh debut.
Nugent said the opportunity to temporarily join Peterborough to help further his development was too hard to turn down.
"I jumped at the chance of coming to Peterborough. I am hoping to get a good run in the team and help the team push for promotion," said Nugent who had a spell at Brentford earlier this season.
"I have been on loan at Brentford, but my chances were limited there.
"I didn't play as much as I would have liked to down to a few things, but I have moved on and hopefully I can prove a point and do well for Peterborough."
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