I never decode them, at least not as I understand the use of the term. Instead, I either view them in my raw converter or I view them using my PhotoSupreme cataloging software. The cataloging software builds its thumbnails stored in its database from the raw file's embedded JPEG. Similarly, when displaying the large image (as opposed to the thumbnail), it displays the embedded JPEG.
1920 x 1080What is the native resolution of your monitor?
In that case, the raw converter is decoding them and it may or may not use the Nikon codec.
A NEF file is an encoded file with a particular format and set values for data description, etc. When decoded, those values are used as data in a program of one form or another.
For example, it might be convenient to store latitude and longitude information as a real number but convert to Degrees/Minutes/Seconds for display.
As another, inside most files, dates are typically encoded as days from some epoch date but displayed as Month/Day/Year or Day/Month/Year depending on which side of the Atlantic you are on.