Business
Bank customers opt for emails over 50 percent hike on SMS alert
Nigerian bank customers will now pay more to receive SMS alerts for transactions, following a 50% hike in charges implemented by several commercial banks. The new fee, which took effect on May 1, 2025, raises the cost of each SMS alert from N4 to N6.
Banks including GTBank, Fidelity Bank, Globus Bank, Sterling, and Ecobank have already notified their customers of the adjustment, attributing the increase to higher tariffs imposed by telecom operators. More banks are expected to implement similar changes in the coming days.
In a message entitled, ‘Important Update on the Charges of SMS Transaction Alerts,” Fidelity Bank explained: “Due to an industry-wide increase in SMS costs by telecommunications providers, the charges for SMS transaction alerts have been revised from N4 to N6 per SMS effective today, May 1, 2025. This adjustment is necessary to ensure we continue delivering secure, timely, and reliable transaction notifications to you.”
GTBank issued a similar notice, informing customers of the new rates and emphasizing the importance of SMS alerts in monitoring account activity. However, the bank also provided an opt-out option, directing customers who prefer not to receive SMS alerts to update their preferences via its website.
The tariff hike by telecom providers traces back to a January approval by the Federal Government through the Nigerian Communications Commission (NCC), which allowed a 50% increase in rates for voice, data, and SMS services nationwide.
Reacting to the new charges, Muda Yusuf, CEO of the Centre for the Promotion of Private Enterprise (CPPE), said the hike was expected due to changes in telecom regulations and tariffs. Still, he criticized the banks for transferring the entire burden to customers.
Not a Charity
“Banks remain among the most profitable sectors in Nigeria, even in tough economic times. Given that, they should show more empathy and be willing to absorb some of these rising costs instead of pushing them entirely to consumers”, Yusuf said.
Similarly, Ayodele Akinwunmi, Senior Relationship Manager at FSDH Merchant Bank, clarified that the fee adjustment originated from the telecom sector and not from the banks themselves.
“The banks are simply relaying the impact of new telecom charges. These SMS alerts are transmitted via telecom networks, using the phone numbers customers provided. The Central Bank mandates that banks must inform customers of account activities through SMS or email,” he explained.
The increase in SMS alert fees raises concerns about customer impact, especially among low-income earners and small businesses. These groups often rely on instant notifications for security and budgeting. Frequent transactions could now translate into significantly higher monthly charges, pushing some to disable alerts entirely to avoid rising costs.
Akinwunmi argued that not everyone has constant access to email. For instance, people in rural or remote areas might not have data access. Also, not every customer has a smartphone or even checks their email regularly.
Market traders and small business owners often fall into this category. But virtually everyone has a phone number tied to their bank account, and SMS will reach them almost anywhere, even without the internet. That’s why SMS alerts are crucial for real-time updates.
These alerts can help stop fraud. “I’ve seen cases where a transaction was quickly flagged and reversed because the customer got an alert immediately. So, while email works for some, SMS is more reliable for many others.”
Hard Choice
However, many customers have indicated their resolve to opt for electronic mail alert from their banks to cut costs and reduce charges on their accounts.
Some of them, who spoke to this medium over the weekend, stated that they would deactivate the Short Message Services (SMS) transaction alert linked to their accounts.
Biola Bayowa, a customer of a bank, said the increase in SMS charges was exploitative. Bayowa noted that in spite of various transaction charges debited from her bank account on a daily basis, the bank still increased SMS charges.
”This move of increasing SMS charges is very exploitative even though they cited telecommunication charge. What about all the numerous unwarranted debits that I get from my account, and they are using telecommunication increase as yardstick to increase theirs. GT will remove different charges from my account until they give me minus balance,” she said.
A GTCO customer, Elizabeth Abu, said she would visit her bank to opt for her transaction alerts to be sent to only her e-mail address.
Abu, who complained about the reduction in her capitalized interest on her account, said the numerous debits were becoming frustrating.
”It does not make sense for the bank to charge me for a transaction I did and also charge me for the alert they sent.
Clement Arubu, a customer with First HoldCo Plc, said he received various transaction debit alerts from his bank totalling N1,050 monthly. Arubu said the debits were huge, especially when calculated between 10,000 customers of the bank.
”Most customers receive these alerts and neglect them because to them, the money is small but when you debit the same money from about 10,000 customers then, you can be sure that the money is huge,” he said.
Bayowa urged the CBN to check excesses of some banks that were allegedly defrauding customers