Effective May 1, 2025, Nigerian banks have raised the fee for SMS transaction alerts from ₦4 to ₦6 per message, marking a 50% increase. This adjustment follows the Nigerian Communications Commission's (NCC) approval of a 50% tariff hike for telecommunications services in January 2025, which affected the cost of bulk SMS services utilized by bank.
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Banks' Communication to Customers
Guaranty Trust Bank (GTBank) informed its customers via email about the fee increase, attributing it to the recent rise in telecom rates. The bank emphasized the importance of SMS alerts for monitoring account activities and preventing fraud. Customers preferring not to receive SMS alerts were advised to update their preferences through the bank's website.
Public Reaction and Alternatives
The fee hike has sparked concerns among customers already burdened by multiple bank charges, including transfer fees, account maintenance charges, and ATM withdrawal fees. Some customers are considering deactivating SMS alerts in favor of free alternatives like email notifications or mobile app alerts. These options provide real-time updates without additional costs.
Stakeholders' Perspectives
Deolu Ogunbanjo, President of the National Association of Telecom Subscribers, acknowledged the link between the SMS charge increase and the telecom tariff hike. He suggested that a lower fee might have been possible if a proposed 35% tariff increase had been implemented instead. Economist Professor Ndubisi Nwokoma expressed concerns about the cumulative effect of multiple bank charges eroding customers' trust in financial institutions.
Conclusion
The increase in SMS transaction alert fees reflects the broader impact of rising operational costs in Nigeria's banking and telecommunications sectors. While banks cite necessary adjustments due to increased telecom tariffs, customers are urged to explore alternative notification methods to manage their finances effectively.
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