The most common and most likely answer to this crossword clue is the 7 letter word PEOPLES
I've seen this crossword clue in The Guardian
P
E
O
P
L
E
S
Buddy explains!

The straight part
We know that "Nations" is the straight/definition part of the clue. The straight part is often a synonym or definition, in this case nations = peoples.The cryptic/wordplay part
In cryptic crossword there's often an wordplay/cryptic part as well.This part involves a more complex hint, such as an anagram, homophone, hidden word, etc.
Sadly, We don't have an explanation for this specific crossword clue yet.
What does PEOPLES mean?
PEOPLES noun- Used as plural of person; a body of human beings considered generally or collectively; a group of two or more persons.
- Persons forming or belonging to a particular group, such as a nation, class, ethnic group, country, family, etc.
- A group of persons regarded as being employees, followers, companions or subjects of a ruler.
- One's colleagues or employees.
- A person's ancestors, relatives or family.
- The mass of a community as distinguished from a special class (elite); the commonalty; the populace; the vulgar; the common crowd; the citizens.
- To stock with people or inhabitants; to fill as with people; to populate.
- To become populous or populated.
- To inhabit; to occupy; to populate.
- To interact with people; to socialize.