₦airaland Forum

By Dotun Omisakin and Adebayo Gbenga,


Customers and stakeholders yesterday expressed concerns over commercial banks’ SMS transaction alert charge increment, further compounding their woes on the multiple charges.

The banks on Wednesday made the announcement of the increment vía messages sent to their respective customers, taking effect from Thursday, May 1, 2025.

“Dear Valued Customer, please be informed that effective Thursday, May 1 2025, the SMS transaction alert fee will increase from ₦4 to ₦6 per message. This adjustment is due to a recent increase in telecom rates as communicated by the telecommunication service providers,” the message read.

Daily Trust’s finding showed that the increment came on the heels of the approved 50 per cent increment by the federal government on telecommunications service providers to increase their tariffs across board.

Already, Nigerian banks impose various charges on their customers, including transfer fees, account maintenance fees, SMS alert fees, ATM withdrawal fees, and levies like the cybersecurity levy.

For instance, if a customer is sending money to another person using a different bank, this attracts three charges including the transfer fees or commission, Value Added Tax (VAT) on the transfer as well as an SMS charge. Then if the transfer is N10,000 or more, the receiving account is also charged N50 as electronic money transfer levy.

Many Nigerians migrated to fintechs to avoid some charges imposed by the deposit money banks until recently when the federal government implemented the EMTL charge on fintechs which means that any transfer from N10,000 and above, the receiving account would be charged N50.


What customers are saying over new charges?

Kayode Gabriel, a financial consultant, said, “I received the SMS notification from GTBank this morning, informing me that they’re increasing their SMS alert charges from N4 to N6 starting May 1. Honestly, it’s just another reminder of how everything keeps going up in this country—with no corresponding value or improvement in service.

“As someone who pays close attention to financial trends, I understand that the banks are trying to adjust to the rising costs driven by the new telecom tariffs and the general economic conditions. But still, it feels like customers are always bearing the brunt without being given sufficient alternatives or communication ahead of time.

“I’m already looking into banks or fintechs that offer free notifications through mobile apps or emails. At this point, we all need to be intentional about minimising avoidable charges.”

Shaba Victor, a resident of Akure, said, “Yes, the SMS alert fee used to be N4 and now GTBank says it’s going up to N6. Honestly, I’m not surprised. Once they increased the cost of calls and data recently, I knew it was only a matter of time before SMS charges would follow. It’s all connected.

“The thing is, these banks won’t miss any chance to push extra costs to the customers. Even if it’s just N2, when you add that across all your transactions in a month, it adds up. It may look small, but it makes a difference—especially now when everything is expensive.

“I don’t blame them completely though. The telecom operators increased their rates first, and the banks are only reacting. Still, it would have been better if they gave customers more options—like switching to app notifications or emails for free. Not everybody wants to keep paying for SMS they didn’t ask for.”

Another customer of a commercial bank lamented that given the consistency with which he carries out transactions on a daily basis, it means more money would be deducted as SMS alert charge.

“For instance, I was charged N1,148 as SMS alert fees for just one month. I received the notification yesterday. So going by the number of alerts I receive on a daily basis, it means I would be spending more on SMS alerts going forward. I will probably find a way around it,” he said.

Emmanuel Okon, another bank customer, said, “I just hope it would not take till eternity to immediately deactivate my SMS alert in any of the banks. I think this is the next step to take now to avoid this new increment.”


Stakeholders weigh in on new charges

In an interview with stakeholders, they acknowledged the rising cost of operation exacerbated by the country’s economy, however promising to slam telecom operators provided the increment does not match service delivery.

President, National Association of Telecom Subscribers, Deolu Ogunbanjo, said the banks’ SMS increment was borne out from the 50 per cent increment in telecom tariff.

He revealed that the increment to N6 could have been N5 if the proposed 35 per cent increment on telecom tariff was not jettisoned during the stakeholders’ engagement over tariff increase.


‘Banks should avoid sending debit, VAT messages separately’

“In February, NLC and some stakeholders, including the NATCOM, met with the Secretary to the Government of the Federation and we agreed on a 35% increase.

“So, in that wise, it should have been N5 for SMS, if it was a 35 per cent increase but unfortunately, they ignored our calls and then they have now started charging a 50 per cent increase,” he said.

He described the increment as unfortunate, urging the banks to reduce sending debit and Value Added Tax (VAT) alerts separately.

The National President of Association of Telephone Cable TV and Internet Subscribers of Nigeria (ATCIS), ATCIS-Nigeria, Prince Sina Bilesanmi, called for quality delivery, saying the increment was propelled by the 50 per cent increment on telecom tariff.

“You know the rate of the normal SMS has also increased, so I do not see any reason why banks should not increase their charges.

“But the question should be when they are charged, do they deliver based on the increased rate? ATCIS is in support of the 50 per cent that applies to voice, data and SMS,” he said.


‘Customers have option of deactivating SMS alert’

A bank customer, Adegbaju Adeolu, said he has deactivated receiving SMS alerts.

“I am quite indifferent about it. I never liked the idea of being charged for transaction alerts and it is why I disabled it a long time ago and this is just to avoid these additional charges which constitute a burden on me,” he said.

Another commercial bank, Union, also reiterated in the message sent to customers that they have the option of deactivating SMS alerts.

The bank said, “Our Telecommunication Service Providers have recently reviewed their service rates applicable to SMS notifications upwards. Consequently, effective Thursday, 1 May 2025, your SMS Transaction Alert Fee will increase from Four Naira (N4.00) to Six Naira (N6.00) per message. Please note that alerts to international phone numbers are subject to higher charges.

“Transaction Alerts are essential as they help you monitor and control your account activities in real time. We encourage you to retain your subscription to this service.

“If you would like to opt out of receiving Transaction Alerts via SMS, please update your preferences by completing the Transaction Alert form available on our website.”

Professor of Economics, Ndubisi Nwokoma, in a recent chat with our correspondent said the multiple charges imposed on banking transactions are limiting the trust Nigerians have with the financial institutions.

He said, “The charges on the bank are quite enormous and the returns are very little. Many people don’t want to use banks these days; some people prefer cash payment because any money for any transaction that takes place, the receiver actually gets less than the value,” he said.

Gunayo:
Use any of Opay, moniepoint or palmpay and save yourself the stress and extortion.

Gunayo:
Use any of Opay, moniepoint or palmpay and save yourself the stress and extortion.

Maobichek:
All transfer, credit receive via Opay above 10k will debit you 50 Naira while First bank is 26 Naira; Opay is milking people more than these commercial banks.