Here's a thought experiment (i.e. all numbers are made up)
Lets say N2 becomes noticeably narcotic at a PP of around 3 bar (air at 30m)
Lets say O2 becomes narcotic at say 1.6 bar. (twice as narcotic)
Diver at 30m on air has N2 at 3 bar causing narcosis, O2 is at 0.84 so no effect yet.
Same diver on 30% has O2 at 1.2, causing little to no narcosis. N2 is at 2.8 so no N2 narcosis.
The big question would be if narcosis is cumulative i.e. add O2 effect and N2 effect or whether they are acting separately.
The same way we treat He and N2 separately with deco, does that translate to the narcotic effects?
The on-gassing and off-gassing of He and N2 are considered separately, but when it comes to calculating the maximum tolerable gradient, which determines your decompression ceiling, the partial pressures of He and N2 in tissues are considered together (weighted according to parameters). This is true for both Buhlmann and VPM calculations; and probably other mixed-gas models too.
The assumption that N2 and O2 are roughly equally narcotic is typically applied to mean that to determine the narcotic effect of a gas, you consider the total ppN2 + ppO2 combined, and don't distinguish between them.