A growing number of Nigerian bank customers are opting to disable their SMS alert services due to rising costs, Daily Trust reports. The SMS alert service, which notifies account holders of transactions such as withdrawals, deposits, and transfers, has long been a vital security feature. However, escalating fees have led many customers to reconsider their use.
The federal government recently approved increased tariffs for telecommunications providers, which led to a rise in the maximum SMS alert fee banks can charge. Since May 1, 2025, the fee increased from ₦4 to ₦6 per message, prompting many customers to opt out.
Several banks have reported an influx of customers requesting to deactivate SMS alerts. For example, a customer at a GT Bank branch in Lagos was surprised by the number of people disabling the service due to high charges, sometimes totaling close to ₦3,000 monthly.
Some customers, like Kayode Gabriel, have switched to receiving transaction alerts via email to avoid SMS fees. However, this alternative can be inconvenient, as others like Mrs. Bernice, a retired civil servant, have reported missing transactions due to delayed or absent email notifications.
The accumulation of various banking charges—including transfer fees, account maintenance fees, SMS alert fees, ATM withdrawal fees, and levies such as the cybersecurity charge—has placed a heavy burden on customers. Fintech platforms, once seen as alternatives to avoid some fees, now also charge fees following the implementation of the Electronic Money Transfer Levy (EMTL).
The National Association of Telecom Subscribers of Nigeria (NATCOMS) has urged banks to reduce costs by consolidating multiple SMS alerts into a single message, potentially lowering charges for customers. NATCOMS President Chief Deolu Ogunbanjo described the ₦6 fee as excessive and called for it to be reduced to ₦5.
Meanwhile, the Association of Telephone, Cable TV, and Internet Subscribers of Nigeria (ATCIS) warned about the risk of double billing, where both telecom operators and banks might charge separately for SMS alerts.
Despite the costs, experts emphasize the importance of SMS alerts for real-time transaction monitoring and fraud prevention, especially for Nigerians without reliable internet access. Financial analyst Adio Ilyas and economist Ndubisi Nwokoma both caution against disabling SMS alerts, highlighting their role in protecting customers’ accounts.
SMS alerts remain crucial for many Nigerians, including market traders and small business owners, as they provide timely updates even without internet connectivity, helping to quickly detect and prevent fraudulent transactions.
