One theory of how CT became the Nutmeg State is slightly nasty.
In the early days of the USA itinerant traders who sold just about everything were common. Many were from New England and some were noted for shady dealings and shoddy goods. Nutmeg was an exotic spice and expensive. Traders from CT were said to pass off cheaply carved pieces of wood as nutmegs. Since nutmeg is usually grated and wasn't likely to be used until the trader was far away, this ruse often worked.