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The use of goats for meat production faces challenges from environmental and nutritional factors. Urea is an affordable non-protein nitrogen source commonly utilized in ruminant nutrition. The objective of this study was to investigate nitrogen utilization in goats fed low-quality hay supplemented with molasses blocks containing urea. Twenty Anglo-Nubian doelings were individually housed in metabolic cages and provided with chopped Buffelgrass (Cenchrus ciliaris) hay ad libitum. Goats were randomly assigned to four urea levels (0, 2, 4, and 6%; n = 5 per treatment) in molasses blocks for a duration of 30 days. A negative nitrogen balance (−2.458 g/day) was observed in doelings consuming blocks without urea, compared with a positive balance (0.895 g/d) for those consuming the 6% urea blocks. Block nitrogen intake significantly increased with urea level, but urea supplementation did not affect dry matter (DM) or neutral detergent fiber (NDFom) intake or digestibility. A minimum crude protein (CP) requirement of 8% for maintenance in doelings consuming low-quality forage with a urea-based supplement was determined through regression analysis between CP intake (% of DM) and N balance (r2 = 0.479; p < 0.002). The value of 8% of CP obtained in this study is similar to several previous studies reported in the literature, but in this case, the increments in CP came exclusively from urea. In this study, increasing the urea content of molasses blocks up to 6% significantly increased nitrogen intake, retention, and balance in goats. These results contribute to a better understanding of nitrogen utilization in goats fed low-quality hay with urea supplementation.