I'm from the hood, niggas terrorist with no head wraps
G’s from the hood are like terrorists, but without the stereotypical middle eastern head wear.
And like terrorists, niggas from the hood get a bad reputation and are on the receiving end of racist and intolerant policy in a world that seems to work constantly against them.
This is a brilliant double entendre because in addition to the reference above, Lil B is calling Joe out for not having good freestyles. “Head wraps” can be a homophone for “head raps” which refers to freestyles (raps off the dome/off the top of your head).
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