From docs at http://developer.android.com/reference/android/graphics/Bitmap.html#recycle%28%29.
Free the native object associated with this bitmap, and clear the reference to the pixel data. This will not free the pixel data synchronously; it simply allows it to be garbage collected if there are no other references. The bitmap is marked as "dead", meaning it will throw an exception if getPixels() or setPixels() is called, and will draw nothing. This operation cannot be reversed, so it should only be called if you are sure there are no further uses for the bitmap. This is an advanced call, and normally need not be called, since the normal GC process will free up this memory when there are no more references to this bitmap.
So it doesn't seem to be necessary to call. The only time I've ever heard a need to manually set an object to null is if its a static variable (or some variable that won't go out of scope easily) and you want to force it out of memory. Maybe if you are continuously allocating bitmaps rapidly there may be a need to try and force garbage collection, but for the majority of cases it is probably not needed.