Does nicotine cause mental health issues?

Or do people with mental health issues have a higher rate of using nicotine?

Scientific Publications - Youth and Young Adults

The present results suggest that, in childhood and early adolescence, disruptive disorder should be the focus of prevention and intervention efforts. Youths with disruptive disorder are at increased risk not only for developing mood disorder but also for other negative psychosocial outcomes, including smoking and the development of nicotine dependence with the health burdens that it entails.
By contrast, nicotine dependence did not predict the onset of a psychiatric disorder.
Citation: Griesler, P. C., Hu, M.-C., Schaffran, C., & Kandel, D. B. (2008). Comorbidity of Psychiatric Disorders and Nicotine Dependence Among Adolescents: Findings From a Prospective, Longitudinal Study. Journal of the American Academy of Child & Adolescent Psychiatry, 47(11), 1340–1350. doi:10.1097/chi.0b013e318185d2ad

Among baseline non-users with social fears and the superordinated group of nondependent respondents with social fears, we found significantly increased odds for subsequent occurrence of nicotine dependence during the four-year follow-up period.
Citation: Sonntag, H., Wittchen, H. ., Höfler, M., Kessler, R. ., & Stein, M. . (2000). Are social fears and DSM-IV social anxiety disorder associated with smoking and nicotine dependence in adolescents and young adults? European Psychiatry, 15(1), 67–74. doi:10.1016/s09249338(00)00209-1

Adolescents with depressive symptoms were more likely than other adolescents to start smoking.
Initiation of smoking may occur rapidly among adolescents who feel depressed, anxious, or experience frequent stressful events.
Citation: Escobedo, L. G., Reddy, M., & Giovino, G. A. (1998). T he relationship between and cigarette sm oking in depressive sym ptom s U S adolescents. Addiction, 93(3), 433–440. doi:10.1046/j.1360-0443.1998.93343311.x

Depressive and anxiety symptoms are associated with higher risks for initiation through an increased susceptibility to peer smoking influences. Promoting the psychological well-being of adolescents and addressing perceived interpersonal benefits of smoking may play a role in the prevention of adolescent tobacco use.
Citation: G C Patton, J B Carlin, C Coffey, R Wolfe, M Hibbert, and G Bowes, 1998: Depression, anxiety, and smoking initiation: a prospective study over 3 years. American Journal of Public Health 88, 1518_1522, https://doi.org/10.2105/AJPH.88.10.1518