A lot of materials work well with nylon strings (or fat strings like bass and cello) but can't take what happens with steel strings, particularly unwound ones. They just don't hold up, and this includes just about every wood there is. Even zero frets develop divots from string vibration. Unless you want to keep changing or fixing the nut for the sake of the look of some material, best stick to the old standby, namely: bone. It's cheap, plentiful, easy to work, and has a very well-known track record.
Osage orange makes a very good board, I've used it on violins and mandolins and even on a guitar once. It is extremely durable and easy to work, fairly analogous to a good rosewood, except for one thing: how it looks. It does darken nicely, but never becomes as dark as rosewood. It's a hard sell for many people. It wouldn't make any better a nut than rosewood.
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