Thanks to Tamlin for useful script. It is annoying that Nautilus lacks this basic feature. Unfortunately, editing "nautilus-navigation-window-ui.xml" did not solve the issue as pikilion has suggested. The new icon on the toolbar is not context-sensitive, ie. will not "create folder here", to the current folder, but to the parent.
Thanks to Tamlin for useful script. It is annoying that Nautilus lacks this basic feature. Unfortunately, editing "nautilus- navigation- window- ui.xml" did not solve the issue as pikilion has suggested. The new icon on the toolbar is not context-sensitive, ie. will not "create folder here", to the current folder, but to the parent.