N6 SMS Alert Charges: Customers Find Alternatives to Avoid Paying Increased Fee
Legit.ng journalist Victor Enengedi has over a decade's experience covering Energy, MSMEs, Technology, Banking and the Economy.
Customers and stakeholders have raised concerns over the recent increase in SMS transaction alert charges by commercial banks, adding to the burden of multiple existing fees.
The banks announced the hike on Wednesday, April 30, via messages to their customers, with the new charges taking effect from Thursday, May 1, 2025.
The fee increase follows the federal government's approval of a 50% tariff rise for telecommunications service providers, which will affect all telecom companies.
Source: UGC
Nigerian banks already impose a range of fees on their customers, such as transfer fees, account maintenance charges, SMS alert fees, ATM withdrawal fees, and levies like the cybersecurity levy.
For example, when transferring money to an account at a different bank, customers incur multiple charges: transfer fees, VAT on the transaction, and an SMS charge.
Stakeholders weigh in on increased charges
Stakeholders have weighed in on the recent increase in charges, acknowledging the impact of the country’s economic challenges.
However, they warned telecom operators that any increase not matched by service improvements will face backlash.
Deolu Ogunbanjo, President of the National Association of Telecom Subscribers, linked the bank’s SMS charge hike to the 50% telecom tariff increase.
He noted that the fee could have been lower, possibly N5, if a proposed 35% tariff rise had not been scrapped during discussions.
Prince Sina Bilesanmi, National President of ATCIS-Nigeria, emphasised the need for quality service delivery, pointing out that SMS rates have risen and, as a result, banks’ charges are justifiable.
He said:
“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."
However, he questioned whether the increased charges lead to improved service.
Professor Ndubisi Nwokoma, an economist, expressed concerns about the growing number of bank charges, saying they erode trust in financial institutions.
He argued that the high fees often mean customers receive less value for their money, leading some to prefer cash payments over bank transactions.
He said:
"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.”
Customers consider alternatives to avoid charges
In messages to customers, some banks advised that those who wish to stop receiving SMS alerts can opt out by completing the transaction alert form on their websites.
Gbenga Ajibade, a customer of one of the new generation banks, told Legit.ng that the increasing number and rates of charges by banks were becoming unbearable, as he now considers deactivating alerts for SMS transactions:
Ajibade said:
"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."
Another customer, Bimbo Babajide, is also considering deactivating SMS alerts as she believes the banks are charging for what is supposed to be a basic service.
Babajide said:
"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?"
Since the emergence of fintech banks, they have the advantage of charging fewer fees than traditional banks.
Chukwudi Nsofor, a Lagos-based businessman, told Legit.ng that fully moving his banking activities to one of the fintech banks is his best option right now.
Nsofor said:
"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!"
Emmanuel Uduak, who has accounts with both fintech and traditional banks, seems to prefer the services rendered by the former. He insists that the fee increase is a good enough reason to fully lean towards his fintech bank.
Uduak said:
"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."
Sterling Bank cancels online transfer fees
In related news, Legit.ng reported that Sterling Bank announced that it will no longer charge transfer fees for local online transactions.
With this decision, Sterling Bank, which is a subsidiary of Sterling Financial Holding Company, becomes the first major Nigerian bank to eliminate these charges on digital transactions.
The bank also encouraged other Nigerian banks to adopt the same policy, as a consideration of the hardship Nigerians are already going through.
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Source: Legit.ng
