Customers of Deposit Money Banks (DMBs) are now compelled to pay more as the banks raise their Short Message Service (SMS) alerts fee by 50 per cent
Customers of Deposit Money Banks (DMBs) in the country will now pay more to receive the Short Message Service (SMS)alerts for transactions following a 50 per cent hike in charges implemented by the commercial banks.
The new fee, which took effect on May 1, 2025, raised the cost of each SMS alert from N4 to N6.
Banks including GTBank, Fidelity Bank, Globus Bank, and Ecobank have already notified their customers of the adjustment, attributing the increase to higher tariffs imposed by telecom operators. More banks are expected to implement similar changes in the coming days.’
In a message with the titled, “Important Update on the Charges of SMS Transaction Alerts”, the Fidelity Bank had explained, “Due to an industry-wide increase in SMS costs by telecommunications providers, the charges for SMS transaction alerts have been revised from N4 to N6 per SMS effective today, May 1, 2025. This adjustment is necessary to ensure we continue delivering secure, timely, and reliable transaction notifications to you.”
The GTBank also issued a similar notice, informing customers of the new rates and emphasized the importance of the SMS alerts in monitoring account activity. The bank further provided an opt-out option, directing customers who prefer not to receive SMS alerts to update their preferences via its website.
The price hike by telecom providers is traced back to a January approval by the Federal Government through the Nigerian Communications Commission (NCC), which allowed a 50 per cent increase in rates for voice, data, and SMS services nationwide.
Reacting to the new charges, Muda Yusuf, CEO of the Centre for the Promotion of Private Enterprise (CPPE), said the hike was expected due to changes in telecom regulations and tariffs. Still, he criticised the banks for transferring the entire burden to customers.
“Banks remain among the most profitable sectors in Nigeria, even in tough economic times. Given that, they should show more empathy and be willing to absorb some of these rising costs instead of pushing them entirely to consumers”, Yusuf said.
Similarly, Ayodele Akinwunmi, Senior Relationship Manager at FSDH Merchant Bank, clarified that the fee adjustment originated from the telecom sector and not from the banks themselves.
“The banks are simply relaying the impact of new telecom charges. These SMS alerts are transmitted via telecom networks, using the phone numbers customers provided. The Central Bank mandates that banks must inform customers of account activities through SMS or email,” he explained.
