Yes, it happens from time to time. Anyway here is commenter Prajk speaking on the appropriation of "Nigger" by nonwhites:
2.) Even once the difference became clear to me, I still wasn't bothered. I always felt that in New York, there was a weird kinship between African-Americans and Puerto Ricans, unlike anything I'd seen. Typically, American ethnic groups tend to have frosty relationships with African-Americans. Maybe it's because Puerto Ricans aren't immigrants--they can relate to the whole "Plymouth Rock landed on us" deal. But frankly, the realtionship is like nothing I've ever seen.
I remember being out at a club one night (back when the Freedom Party was at Star Foods) and watching a gang of Lower-East side cats grooving to all this 80s R&B. It was shocking to me because, African-Americans party in a very particular way--they love music, not so much more than whites, but just in a different way. The Puerto Rican cats I was watching were partying in that way which I commonly associated with blacks--it was more the spirit of the thing, than anything tangible. I mean, they did form a Soul Train line, so that was tangible, but, as I said, it was more the spirit of thing. Being straight out of West Baltimore, where the only ethnicities are Black, Blacker, and Blackest (I pledged myself to the latter) I was completely shocked. One of my best friends, whose half-Puerto Rican and half-Dominican, happened to be with me, and he just got a great kick out of my naivete.
What I was witnessing was quite simple--the Puerto Ricans (and maybe the Dominicans) are probably the only other non-black ethnic group in America that Rakim could point at and say, "I know you got soul," and there'd be nothing ironic about it. To paraphrase, Bobby Byrd, if they didn't, they wouldn't be in here. Obviously, a lot of Puerto-Ricans (and Dominicans) have African ancestry, and from what I've heard, there some issues around that. But, hey, from what I've heard there some issues around African-Americans having African blood also, so who am I to talk. During the Puerto-Rican Day parade, I see Negroes who I know are only two generations out of the South, who don't speak a lick of Spanish, waving the flag. But those same Negroes could care less about the St. Patrick's Day parade. I know some black folks do have a problem with Puerto-Ricans saying "nigger"--but most of them have a problem with African-Americans saying it also. I don't know. Its never really bothered me. I've come to think of Puerto-Ricans as my long-lost cousins--even if I was the one who was actually lost.
FIXT: Two great examples of what I mean: