Customers discover alternatives as banks increase SMS alert fees

Legit.ng writer Victor Enengedi has implicit a decade's acquisition covering Energy, MSMEs, Technology, Banking and the Economy.

Customers and stakeholders person raised concerns implicit the caller summation successful SMS transaction alert charges by commercialized banks, adding to the load of aggregate existing fees.

The banks announced the hike connected Wednesday, April 30, via messages to their customers, with the caller charges taking effect from Thursday, May 1, 2025.

The interest summation follows the national government's support of a 50% tariff rise for telecommunications work providers, which volition impact each telecom companies.

N6 SMS Alert Charges: Customers Find Alternatives to Avoid Paying Increased Fee
Source: UGC

Nigerian banks already enforce a scope of fees connected their customers, specified arsenic transfer fees, relationship attraction charges, SMS alert fees, ATM withdrawal fees, and levies similar the cybersecurity levy.

For example, erstwhile transferring money to an relationship astatine a antithetic bank, customers incur aggregate charges: transportation fees, VAT connected the transaction, and an SMS charge.

Stakeholders measurement successful connected accrued charges

Stakeholders person weighed successful connected the caller summation successful charges, acknowledging the interaction of the country’s economical challenges.

However, they warned telecom operators that immoderate summation not matched by work improvements volition look backlash.

Deolu Ogunbanjo, President of the National Association of Telecom Subscribers, linked the bank’s SMS complaint hike to the 50% telecom tariff increase.

He noted that the interest could person been lower, perchance N5, if a projected 35% tariff emergence had not been scrapped during discussions.

Prince Sina Bilesanmi, National President of ATCIS-Nigeria, emphasised the request for prime work delivery, pointing retired that SMS rates person risen and, arsenic a result, banks’ charges are justifiable.

He said:

“You cognize the complaint of the mean SMS has besides increased, truthful I bash not spot immoderate crushed wherefore banks should not summation their charges."

However, helium questioned whether the accrued charges pb to improved service.

Professor Ndubisi Nwokoma, an economist, expressed concerns astir the increasing fig of slope charges, saying they erode spot successful fiscal institutions.

He argued that the precocious fees often mean customers person little worth for their money, starring immoderate to similar currency payments implicit slope transactions.

He said:

"Many radical don’t privation to usage banks these days; immoderate radical similar currency outgo due to the fact that immoderate wealth for immoderate transaction that takes place, the receiver really gets little than the value.” 

Customers see alternatives to debar charges

In messages to customers, immoderate banks advised that those who privation to halt receiving SMS alerts can opt retired by completing the transaction alert signifier connected their websites.

Gbenga Ajibade, a lawsuit of 1 of the caller procreation banks, told Legit.ng that the expanding fig and rates of charges by banks were becoming unbearable, arsenic helium present considers deactivating alerts for SMS transactions:

Ajibade said:

"This is becoming ridiculous! First, it's transportation fees, past relationship attraction charges, and present SMS alerts person been accrued from N4 to N6? I’m earnestly considering deactivating my SMS alerts altogether. What’s the constituent of paying other for thing that’s expected to beryllium a basal service? It's conscionable getting retired of hand."

Another customer, Bimbo Babajide, is besides considering deactivating SMS alerts arsenic she believes the banks are charging for what is expected to beryllium a basal service.

Babajide said:

"The banks support piling connected much and much charges, and present they’ve accrued the SMS alert interest to N6? I’m reasoning of deactivating my alerts and conscionable checking my relationship equilibrium online whenever I request to. Why should I support paying for these other charges that don’t amended service?"

Since the emergence of fintech banks, they person the vantage of charging less fees than accepted banks.

Chukwudi Nsofor, a Lagos-based businessman, told Legit.ng that afloat moving his banking activities to 1 of the fintech banks is his champion enactment close now.

Nsofor said:

"I’ve been loyal to my slope for years, but I’m truthful frustrated by the changeless interest increases, particularly the SMS alert complaint hike to N6. I’m earnestly looking into fintech options that connection little charges and amended transparency. If this continues, I whitethorn power entirely. Enough is enough!"

Emmanuel Uduak, who has accounts with some fintech and accepted banks, seems to similar the services rendered by the former. He insists that the interest summation is simply a bully capable crushed to afloat thin towards his fintech bank.

Uduak said:

"At this rate, I mightiness conscionable afloat power to my fintech bank. Commercial banks are conscionable excessively costly now, with each the hidden fees. First, it’s the transportation charges, past the SMS alerts... Next, it’ll beryllium thing else. Fintechs connection amended work without the ridiculous fees."

Sterling Bank cancels online transportation fees

In related news, Legit.ng reported that Sterling Bank announced that it volition nary longer complaint transportation fees for section online transactions.

With this decision, Sterling Bank, which is simply a subsidiary of Sterling Financial Holding Company, becomes the archetypal large Nigerian slope to destruct these charges connected integer transactions.

The slope besides encouraged different Nigerian banks to follow the aforesaid policy, arsenic a information of the hardship Nigerians are already going through.

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Source: Legit.ng