spot/lump on face

Went to the doctors this morning because about a month ago i woke up thinking i was getting a spot just under my nostril. It didnt come to much & went away. Within a few days it was back again & the last few days its been red on the surface of the skin & slightly itchy. The doc didnt actually know what it was and said its possible it was a bite, but said it does look like it could be a bit infected. So gave me some Fucidin cream? He did say if that doesnt get rid of it i might have to have it removed but because of where its situated, they wouldnt do it there at the surgery.
Has anyone had anything similar and if so what did you do about it?
Cheers
c xxxxxxxxxx

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