In this case, IllegalArgumentException conveys clear information to the user using your API that the " should not be null". As other forum users pointed out you could use NPE if you want to as long as you convey the right information to the user using your API.
GaryF and tweakt dropped "Effective Java" (which I swear by) references which recommends using NPE. And looking at how other good APIs are constructed is the best way to see how to construct your API.
Another good example is to look at the Spring APIs. For example, org.springframework.beans.BeanUtils.instantiateClass(Constructor ctor, Object[] args) has a Assert.notNull(ctor, "Constructor must not be null") line. org.springframework.util.Assert.notNull(Object object, String message) method checks to see if the argument (object) passed in is null and if it is it throws a new IllegalArgumentException(message) which is then caught in the org.springframework.beans.BeanUtils.instantiateClass(...) method.
