A growing number of Nigerian bank customers are opting to disable their SMS alert services, citing the rising costs as a major concern.
The SMS alert service, which notifies account holders of transactions such as withdrawals, deposits, and transfers, has been a vital security feature. However, escalating fees associated with these alerts have made many customers reconsider their use.
The federal government approved for the telecommunications service providers to increase their tariffs across board.
This was followed by an increase in the maximum allowable SMS alert fee that banks can charge customers.
The increment took effect from May 1, 2025 and since then there has been an influx of customers opting out of the SMS service.
‘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”, one of the banks had said in an email message to its customers.
Several bank branches across major cities have reported an increase in customers visiting to request the deactivation of their SMS alert subscriptions.
An acquaintance shared his recent experience at a GT Bank branch in Lagos, where he went to disable his SMS alerts after being charged close to ₦3,000 for the service.
He was surprised to learn from the bank official that many others were also disabling their SMS alerts, jokingly wondering why so many people were coming to do the same.
Another customer identified as Kayode Gabriel revealed that he switched to receiving transaction alerts only via email to avoid the high SMS alert fees.
“I have over five Nigerian bank accounts, imagine getting charged N6 for all the banks I use, I prefer to use my email to monitor my transactions or I go on the mobile app to refresh my balance,” he explained.
However, this alternative comes with its own challenges. Mrs. Bernice, a retired civil servant shared that she no longer tracks her SMS alerts because she relies solely on emails.
She said she sometimes loses track of transactions, explaining, “My daughter said she sent me money yesterday, but I have not seen it; I have checked the emails too, it’s not there. It would have been easier if an SMS alert came in, but it’s too costly.”
She noted the downside of disabling SMS alerts is the inconvenience and stress of having to constantly check emails to monitor her account activity.
Many Nigerians find the monthly fees, which can accumulate significantly depending on transaction volume, too burdensome amid the country’s challenging economic environment.
Customers say the charges add up quickly and strain their limited budgets.
Too many charges
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.
Fintechs not to the rescue
Many Nigerians had earlier moved to fintechs to avoid some charges imposed by the deposit money banks but fintechs have started charging too after the federal government implemented the Electronic Money Transfer Levy (EMTL) charge on them which means that any transfer from N10,000 and above, the receiving account would be charged N50.
Banks should stop sending multiple SMSs – NATCOMS
President, National Association of Telecom Subscribers of Nigeria (NATCOMS) Deolu Ogunbanjo, said though the banks’ SMS increment was borne out from the 50 per cent increment in telecom tariff, the banks should stop sending multiple SMSs to their customers.
Ogunbanjo said instead of sending four to five SMSs on a transaction, the bank can harmonise it and send it at once to reduce the cost on consumers.
“The banks should avoid sending multiple SMSs to their customers because they can actually harmonise four to five SMSs usually sent on a transaction to just one. This will reduce the cost borne by the customers”, the NATCOMS president told Daily Trust in a telephone interview.
By avoiding debit, VAT messages, cybersecurity charges and others separately, he said banks would retain their customers’ loyalty and it will be a win-win issue.
He also insisted that the N6 SMS charge is outrageous and should be slashed to N5.
“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 Association of Telephone, Cable TV, and Internet Subscribers of Nigeria (ATCIS) has exonerated subscribers over the deactivation of receiving SMS banks’ alert.
The National president, Bilesanmi Sina, in a chat with our correspondent, said the decision to transfer SMS deduction from bank to telecom operators lacks robust stakeholders’ engagement.
They refuse to come for the stakeholders meeting. They fail to carry us along. And people are saying whether the consumers are kings.
“We need a stakeholders meeting. We need orientation. We need so many things. We need cooperation. We need partnership. That is it. They need to respect us,” he said.
He raised the concern of double billings, warning that telecom operators and banks might charge for SMS differently.
“My members should watch out for double billing. If you are running a transaction, there is a tendency that the telecom operator will charge you and also the bank will charge. That is double billing, which is totally bad to my members and the economy,” he said
‘SMS alerts still preferable’
But experts have said transaction alerts are essential as they help customers monitor and control their account activities in real time.
Adio Ilyas, a Lagos based financial analyst said I will not advise bank customers to deactivate their SMS alert service.
“I would rather encourage bank customers to retain their subscription to SMS alert service of their banks because it helps prevent fraud in their accounts.
Professor of Economics, Ndubisi Nwokoma, had told Daily Trust in a chat that 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.”
Another expert, Lekan Ojo Afolabi said SMS alert service is still preferable as many Nigerians are still not connected to the internet.
“Market traders and small business owners fall into this category. But their phone numbers are 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.”
Daily Trust
