Only if it is filtered and stored correctly. Just the same for compressed air. I fill my aircraft tyres from a SCUBA cylinder and I can assure you that the air is just as dry and filtered as it comes from my compressor which is quadruple filtered and used for mixing breathing gas.
Sorry Bosey thats plain wrong
. Compressed nitrogen water content is just a few parts per billion, and will be considerably (ie more than 1000 times) lower than that of compressed air.
However, you're certainly correct that:
Nitrogen has limited benefits in our spam can world, don't believe the hype otherwise.