Rising Costs Drive Nigerians to Disable Bank SMS Alerts

An increasing number of Nigerian bank customers are opting out of SMS transaction alerts as the cost of the service continues to rise, prompting concerns over financial transparency and digital accessibility.

The SMS alert service, which provides real-time notifications for withdrawals, deposits, and transfers, has long served as a critical security feature for account holders. However, recent hikes in telecom tariffs and SMS fees have made the service unaffordable for many, especially in Nigeria's strained economic environment.

Tariff Hike Takes Effect

Following the Federal Government’s approval for a general increase in telecom tariffs, banks responded by raising the SMS alert fee from ₦4 to ₦6 per message, effective May 1, 2025.

In a notification sent via email, one bank stated:

“Please be informed that effective Thursday, May 1, 2025, the SMS transaction alert fee will increase from ₦4 to ₦6 per message. This adjustment reflects the new telecom rates communicated by service providers.”

Since the adjustment, bank branches across major cities have reported a surge in customers requesting deactivation of SMS alerts.

Public Response and Financial Strain

A Lagos-based customer at GTBank shared his experience of being charged nearly ₦3,000 for SMS alerts, prompting him to disable the service. He was surprised to find many others at the bank doing the same.

Another customer, Kayode Gabriel, said he switched to email notifications to reduce costs:

“I have over five Nigerian bank accounts. At ₦6 per SMS, that adds up fast. I prefer to monitor transactions via email or the mobile app.”

However, email alerts are not without their limitations. Bernice, a retired civil servant, noted that since switching to email-only notifications, she often misses transactions:

“My daughter said she sent money yesterday, but I didn’t get an alert. I checked my email—nothing. SMS would’ve made it easier, but the cost is too high.”

For many, the compounding nature of charges—SMS alerts, transfer fees, account maintenance, ATM withdrawal fees, and levies like the Cybersecurity Levy—makes the banking experience increasingly unaffordable.

Fintechs No Longer a Refuge

Previously, many Nigerians turned to fintech platforms to avoid traditional bank charges. However, with the implementation of the Electronic Money Transfer Levy (EMTL), fintechs have begun charging ₦50 on transfers of ₦10,000 and above—similar to conventional banks.

Consumer Advocates React

Chief Deolu Ogunbanjo, President of the National Association of Telecom Subscribers (NATCOMS), criticized the banks for sending multiple SMS alerts per transaction.

“Banks should consolidate messages. Instead of four or five SMSs for one transaction, they should send one. This will lower costs for consumers.”

He also argued that the 50% hike was excessive, stating:

“A 35% increase would have brought the fee to ₦5, not ₦6. We urged moderation, but banks went ahead regardless.”

Bilesanmi Sina, President of the Association of Telephone, Cable TV, and Internet Subscribers (ATCIS), also condemned the shift in billing responsibility from banks to telecom providers, citing lack of stakeholder engagement.

“They failed to consult us. Now, there's a risk of double billing—banks and telecoms may both charge for the same alert.”

Experts Urge Caution

Despite rising costs, financial experts continue to stress the importance of SMS alerts for fraud prevention and account monitoring.

Adio Ilyas, a Lagos-based financial analyst, advised against opting out of the service:

“SMS alerts offer real-time updates that can help customers detect and respond to suspicious activity.”

Professor Ndubisi Nwokoma, an economist, said the burden of excessive bank charges is eroding public trust:

“People are moving away from banks because transaction charges reduce the real value of what is received.”

Lekan Ojo Afolabi, another expert, emphasized that SMS alerts remain essential for Nigerians in low-connectivity areas:

“Many market traders and small business owners don’t have regular internet access. SMS is the most reliable way for them to receive financial updates.”

Daily Trust

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