This phrase originated in Little Rock, Arkansas. Basically, it means a righteous cluster fuck. It can be used anytime you get into a pinch, or just a down right fucked up situation with multiple causes and no way out.
"This is such a nut hair jubilee."
"This is a fine nut hair jubilee you've gotten us into."
"Jesus Christ, what a nut hair jubilee."
"No thanks. The last time you had an idea, we wound up in a nut hair jubilee."