"It's Too Much": Surging SMS Alert Charges Force Nigerian Bank Customers to Abandon Vital Notification Service

 

A growing wave of dissatisfaction is sweeping across Nigeria's banking sector, as customers across the country are opting out of receiving SMS alerts due to rising costs. The SMS alert service, once hailed as a fundamental layer of security for monitoring bank transactions in real time, is now considered by many as an unaffordable luxury.

For years, bank customers depended on these instant alerts to keep tabs on withdrawals, deposits, and transfers. But with the fee per SMS recently rising from ₦4 to ₦6 following a federal government-approved hike in telecommunications tariffs, the mood has shifted.

As of May 1, 2025, Nigerian banks began implementing the new charges. The result has been a notable surge in customers trooping into bank branches across major cities like Lagos, Abuja, and Port Harcourt to request the deactivation of their SMS alert services.

One such customer, who visited a GTBank branch in Lagos, shared how he was shocked by the monthly deduction of nearly ₦3,000 from his account simply for SMS alerts. According to him, bank staff casually confirmed that he was far from alone; many others had also shown up with similar complaints.

Another individual, Kayode Gabriel, explained that he had abandoned SMS alerts across his five bank accounts in favor of email notifications. “Imagine being charged ₦6 for every SMS across five accounts. It adds up quickly. I now rely on email alerts and mobile banking apps to monitor my finances,” he said.

However, email alerts are not always a perfect substitute. For elderly or less tech-savvy customers, switching to emails brings its own set of problems. Bernice, a retired civil servant, mentioned that her daughter recently sent her money, but she couldn’t find any notification. “I checked my email, but nothing was there. If I had received an SMS, I would have known immediately. Still, I had to cancel SMS alerts because they were too expensive,” she lamented.

Nigerians have long grappled with multiple banking charges, ranging from transfer fees and account maintenance fees to levies like the cybersecurity fee. Many find these cumulative charges overwhelming, especially given the country's ongoing economic hardships. A typical transfer to another bank can incur three or more separate deductions: a transfer commission, Value Added Tax (VAT), an SMS alert fee, and a ₦50 levy for amounts ₦10,000 and above.

Initially, customers flocked to fintech platforms in hopes of escaping traditional bank fees. However, following the federal government's decision to impose the Electronic Money Transfer Levy (EMTL) on fintechs, these platforms have also begun passing the costs on to users. The ₦50 EMTL now applies to any qualifying transaction, regardless of whether it originates from a fintech or a conventional bank.

Telecom and banking regulators are facing increasing scrutiny over how these charges are rolled out. Chief Deolu Ogunbanjo, president of the National Association of Telecom Subscribers (NATCOMS), criticized banks for sending multiple alerts for a single transaction. “Banks could easily combine these messages instead of sending four to five separate SMSs per transaction. Doing so would significantly cut down on the costs for customers,” he argued.

Ogunbanjo further noted that the 50 percent increase in SMS costs is excessive, suggesting that ₦5 per message would have been a more reasonable adjustment. “A 35 percent increase would have made more sense. But unfortunately, our recommendations were ignored,” he said.

On another front, Bilesanmi Sina, president of the Association of Telephone, Cable TV, and Internet Subscribers of Nigeria (ATCIS), raised concerns about potential double billing. He warned that without clear communication and coordination between banks and telecom operators, customers might end up being charged twice—once by the bank and again by the telecom provider—for the same SMS alert.

Despite these challenges, financial experts are cautioning against completely opting out of SMS alerts. Adio Ilyas, a Lagos-based financial analyst, emphasized the importance of real-time transaction notifications in combating fraud. “SMS alerts are immediate. Unlike emails that may delay or go unnoticed, SMSs are more effective in flagging unauthorized transactions quickly,” he said.

Professor Ndubisi Nwokoma, an economist, added that the sheer volume of charges is eroding public trust in Nigeria’s banking institutions. “People are frustrated. By the time all fees are deducted, customers are often left with less than the original transaction value,” he explained.

For many everyday Nigerians, SMS alerts remain the only practical way to keep up with bank activity, especially in areas with unreliable internet access. Lekan Ojo Afolabi, a financial literacy advocate, pointed out that traders and small business owners fall into this group. “SMS alerts reach them even in remote areas. Without them, they’re left in the dark about their account status,” he noted.

While alternatives like mobile apps and emails exist, they’re not yet universally accessible or reliable. Until a more inclusive and affordable alert system is developed, the dilemma between financial security and affordability will continue to force difficult choices upon Nigerian bank customers.