Customers and financial stakeholders have expressed frustration over the recent increase in SMS transaction alert fees by Nigerian commercial banks, which took effect on Thursday, May 1, 2025. The charge has risen from ₦4 to ₦6 per SMS, a move banks say was necessitated by a recent 50% hike in telecom tariffs approved by the federal government.
In messages sent to their customers, banks cited increased telecom service costs as the reason behind the hike. “This adjustment is due to a recent increase in telecom rates as communicated by the telecommunication service providers,” read one message.
Daily Trust reports that this fee hike adds to a growing list of charges borne by bank customers, including transfer fees, VAT, ATM withdrawal fees, account maintenance fees, and the cybersecurity levy. Transfers of ₦10,000 or more now also attract a ₦50 Electronic Money Transfer Levy (EMTL), regardless of the platform used.
Public Reactions: Small Fee, Big Burden
Kayode Gabriel, a financial consultant, said the ₦2 increase reflects broader inflationary pressures. “It’s another reminder of how everything keeps going up without better service,” he said, noting he’s exploring fintechs offering free app or email alerts.
Shaba Victor from Akure pointed out that while ₦2 seems insignificant, frequent transactions make it add up quickly. “It may look small, but it makes a difference—especially now when everything is expensive.”
Another customer lamented being charged ₦1,148 for SMS alerts in just one month. “I receive alerts daily, so the hike means more deductions. I need to find a way around this.”
Others like Emmanuel Okon are opting to deactivate SMS alerts entirely to avoid additional costs. “I just hope it won’t take forever to opt out,” he said.
Stakeholders React: Cost vs. Service Quality
Deolu Ogunbanjo, President of the National Association of Telecom Subscribers, linked the bank fee hike to the government-sanctioned 50% telecom tariff increase. He criticized the move, saying it would have been more reasonable to limit the hike to 35%, as previously discussed with stakeholders.
He also urged banks to avoid sending separate messages for debits and VAT charges, suggesting consolidated alerts to reduce costs for consumers.
Prince Sina Bilesanmi, President of ATCIS-Nigeria, said the banks’ hike was justified given rising SMS costs, but stressed that service quality must improve in line with increased fees.
Banks Offer Opt-Outs
Some banks, including Union Bank, have reminded customers that they can opt out of SMS alerts entirely. A notice from the bank reads, “Transaction alerts are essential… but if you would like to opt out, please update your preferences.”
Expert Opinion: Rising Charges Erode Trust
Professor Ndubisi Nwokoma, an economist, warned that these mounting charges are undermining public trust in the banking system. “People now prefer cash because bank deductions reduce the real value of money received,” he said.
As inflation and service costs rise, many Nigerians are seeking cost-saving alternatives, including fintechs and cash-based transactions, highlighting growing discontent with traditional banking fees.
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