Hi Divleen,
We have some API documentation regarding NITF here: https://developers.arcgis.com/rest/services-reference/image-support-data.htm
Regarding general NITF usage in ArcGIS Desktop products, this documentation states the following:
Generally, this format can be read quickly, and extensive metadata support and complexity make other formats unsuitable. There are some formats of NITF that have forms of JPEG 2000 compression pyramids that are very slow to read, in which case consider creating additional pyramids. In some cases, to improve performance it is necessary to convert to a different compressed NITF format.