nitrogen has significantly less moisture than compressed air. By eliminating as much of the moisture as possible you have a much more stable and predictable air pressure increase as the tire heats up.
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Nitrogen is used in my race car because:
F1 teams use Nitrogen to fill the tires because of its low dilatation compared to air, a small dilatation in a F1 tire will result in unbalancing the car and this would make it unstable and unsafe to drive.
Nitrogeon is used in race car tyres due to nitrogeon particles eliminate moistures and tyre pressure variation depending on the temperture. This gives the driver better control of the car.
Nitrogen is pumped into tires as it is believed that it is more stable than air giving it better traction with less wobbling.