The study estimated the impact of financial inclusion on financial stability of Nigeria over the period of 1982-2019. Adopting the Classical Regression Model, the findings reveal that financial inclusion impacts positively on financial stability. Deposits of rural branches of commercial banks reflected a positive relationship with financial stability, while investment also had a significant positive relationship with financial stability. The study recommended that policies should be directed towards creating more investment opportunities and inclusive financial system to improve the current level of financial inclusion, so as to achieve better financial stability in Nigeria.

Keywords: financial inclusion; financial stability; investment, deposits

JEL Classification: G21; G28; O16