Nigerians abandon bank SMS after increase in charges, adopts new model

• Many Nigerian banks person accrued SMS alert fees from N4 to N6 owed to a telecom tariff hike approved by the Nigerian Communications Commission
• Customers are unhappy with the interest rise, viewing it arsenic exploitative, particularly since banks proceed to complaint different transaction fees
• Some clients program to power to email alerts to debar the higher SMS charges, portion calls person been made for the Central Bank of Nigeria to analyse alleged unfair banking practices

Legit.ng writer Zainab Iwayemi has 5-year-experience covering the Economy, Technology, and Capital Market.

Following a 50% summation successful fees imposed by galore commercialized banks, Nigerian slope clients volition present person to wage much to person SMS alerts for transactions. Effective May 1, 2025, the caller interest accrued the terms of each SMS alert from N4 to N6.

Many clients person expressed their determination to take physics message alerts from their banks. Photo Credit: Contributor
Source: Getty Images

Customers person already been informed of the alteration by banks specified arsenic GTBank, Fidelity Bank, Globus Bank, Sterling, and Ecobank, who person attributed the emergence to increasing telecom supplier rates. More banks are anticipated to marque akin adjustments successful the days ahead.

In a connection entitled “Important Update connected the Charges of SMS Transaction Alerts,” Fidelity Bank explained:

“Due to an industry-wide summation successful SMS costs by telecommunications providers, the charges for SMS transaction alerts person been revised from N4 to N6 per SMS effectual today, May 1, 2025. This accommodation is indispensable to guarantee we proceed delivering secure, timely, and reliable transaction notifications to you.”

Similar notices were sent retired by GTBank to customers, alerting them to the revised charges and stressing the worth of SMS notifications for tracking relationship activity. Customers who would alternatively not person SMS alerts can, however, set their preferences connected the bank's website by utilizing the opt-out option.

The Federal Government, acting done the Nigerian Communications Commission (NCC), approved a 50% emergence successful tariffs for phone, data, and SMS services countrywide successful January, which is erstwhile telecom operators raised their rates.

The CEO of the Centre for the Promotion of Private Enterprise (CPPE), Muda Yusuf, responded to the accrued fees by saying that the emergence was anticipated due to the fact that of modifications to telecom laws and rates. Nevertheless, helium chastised the banks for shifting the full load to their clients.

Hard choice

To prevention money and little charges connected their accounts, galore clients person expressed their determination to take physics message alerts from their banks.

Speaking to this mean implicit the weekend, immoderate customers declared that they would crook disconnected the SMS transaction alerts associated with their accounts.

A slope lawsuit named Biola Bayowa said that the emergence successful SMS fees was exploitative. Bayowa remarked that contempt assorted transaction charges regularly debited from her slope account, the slope nevertheless accrued SMS charges.

“This determination of expanding SMS charges is precise exploitative adjacent though they cited telecommunication charges. What astir each the galore unwarranted debits that I get from my account? They are utilizing the telecommunication summation arsenic a yardstick to rise theirs. GT volition region antithetic charges from my relationship until they springiness maine a antagonistic balance,” she said.

Elizabeth Abu, a GTCO customer, stated that she would spell to her slope and take to person her transaction alerts sent exclusively to her email address.

Abu claimed that the changeless debits were getting annoying and that she was upset astir the alteration successful her account's capitalised interest.

“It does not marque consciousness for the slope to complaint maine for a transaction I did and besides complaint maine for the alert they sent.”

Customers person been informed of the alteration by banks successful caller times. Photo Credit: Contributor
Source: Getty Images

First HoldCo Plc lawsuit Clement Arubu reported that his slope sent him a full of N1,050 successful transaction debit notices each month. According to Arubu, the debits were substantial, peculiarly erstwhile compared to the bank's 10,000 customers.

“Most customers person these alerts and neglect them because, to them, the wealth is small. But erstwhile you debit the aforesaid wealth from astir 10,000 customers, past you tin beryllium definite that the wealth is huge,” helium said.

Bayowa suggested that the CBN should analyse the excesses of definite banks that were allegedly cheating customers.

CBN makes changes to ATM withdrawal limits

Legit.ng reported that the caller N100 ATM off-site withdrawal charges person begun since March 1, 2025.

Imposed by the Central Bank of Nigeria (CBN), the withdrawal complaint volition spot Nigerians and different ATM users charged 100 per transaction for utilizing ATMs not belonging to their banks, different known arsenic off-site ATMs.

Findings amusement that banks loaded their ATMs with currency arsenic they began the caller charges.

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Source: Legit.ng