Bank customers across Nigeria are voicing their frustrations over the latest increase in SMS transaction alert fees by commercial banks, adding to the growing number of deductions on their accounts. The adjustment, which saw SMS alert charges rise to N6, was communicated to customers on Wednesday, April 30, with implementation starting from Thursday, May 1, 2025.
This move follows the federal government’s recent approval of a 50% tariff increase for telecom operators, affecting mobile network providers nationwide.
As Nigerian banks continue to charge various fees — including transfer costs, account maintenance charges, ATM withdrawal levies, and a recently introduced cybersecurity fee — this latest hike in SMS alert charges has sparked heated reactions from customers and industry observers.
Industry players have weighed in on the issue, acknowledging that the difficult economic environment is forcing service providers to review their rates. However, many cautioned that any tariff hike without a corresponding improvement in service quality could trigger public backlash.
Deolu Ogunbanjo, president of the National Association of Telecom Subscribers, linked the banks’ decision to the recently approved 50% telecom tariff adjustment. He noted that the SMS alert fee might have been more modest — around N5 — if the earlier proposed 35% increase had not been rejected during negotiations.
Similarly, Prince Sina Bilesanmi, National President of ATCIS-Nigeria, stressed the importance of service quality alongside increased rates. He explained that with telecom providers raising SMS rates, banks are somewhat justified in adjusting their own charges, though service delivery must improve.
“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,” he said.
Despite this, concerns linger about whether higher charges necessarily translate to better services for customers.
Professor Ndubisi Nwokoma, an economist, expressed his concerns over the escalating number of bank fees, warning that they erode public trust in financial institutions. He highlighted how these charges often reduce the real value of customers’ funds, pushing some to avoid banking services altogether.
“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 remarked.
In light of the development, some banks have advised customers that they can opt out of SMS alerts by filling out a transaction alert form available on their websites.
However, several bank users have begun considering more drastic steps. Gbenga Ajibade, a customer of a new-generation bank, told Legit.ng that the growing number of deductions is becoming intolerable.
“This is becoming ridiculous! First, it’s transfer fees, then account maintenance charges, and now SMS alerts have been increased from N4 to N6? I’m seriously considering deactivating my SMS alerts altogether. What’s the point of paying extra for something that’s supposed to be a basic service? It’s just getting out of hand,” Ajibade lamented.
Another customer, Bimbo Babajide, echoed similar sentiments, suggesting that the SMS alert charge should be part of standard banking services.
“The banks keep piling on more and more charges, and now they’ve increased the SMS alert fee to N6? I’m thinking of deactivating my alerts and just checking my account balance online whenever I need to. Why should I keep paying for these extra charges that don’t improve service?” she questioned.
With fintech institutions offering minimal or no charges for many of these services, they are becoming increasingly attractive to frustrated bank customers.
Chukwudi Nsofor, a businessman based in Lagos, told Legit.ng he is actively considering moving his financial activities to one of the newer, digital-first banks.
“I’ve been loyal to my bank for years, but I’m so frustrated by the constant fee increases, especially the SMS alert charge hike to N6. I’m seriously looking into fintech options that offer lower charges and better transparency. If this continues, I may switch entirely. Enough is enough!” he declared.
Similarly, Emmanuel Uduak, who uses both traditional and fintech banking platforms, revealed that he might finally transition fully to digital banking, given the cost advantages.
“At this rate, I might just fully switch to my fintech bank. Commercial banks are just too expensive now, with all the hidden fees. First, it’s the transfer charges, then the SMS alerts… Next, it’ll be something else. Fintechs offer better service without the ridiculous fees,” Uduak concluded.
