Bank customers across Nigeria will begin paying ₦6 per SMS transaction alert starting Thursday, May 1, 2025. This marks a 50% increase from the previous charge of ₦4 per message, a change that has drawn mixed reactions from the public.
The new fee applies to every SMS notification triggered by a transaction on a customer’s account, including deposits, withdrawals, transfers, and card usage. The move is attributed to rising telecommunication costs.
In an official notice titled “Increase in SMS Transaction Alert Fee”, Guaranty Trust Bank Limited (GTBank) informed its customers of the impending hike.
“Dear Valued Customer, Please be informed that effective Thursday, May 1, 2025, the SMS transaction alert fee will increase from ₦4 to ₦6 per message,” the bank said in a mass email.
The message further explained the rationale behind the new fee, saying, “This adjustment is due to a recent increase in telecom rates as communicated by the telecommunication service providers.”
The notice also indicated to customers with international numbers that: “SMS alerts to international phone numbers are subject to higher charges.”
Background to the Adjustment
This increase comes in the wake of the federal government’s recent approval for telecommunication companies to review and raise their service rates. The Nigerian Communications Commission (NCC) had received complaints from telecom operators regarding rising operational costs, exchange rate instability, and insecurity in some parts of the country affecting infrastructure.
Operators, including MTN Nigeria, Airtel, and Globacom, had earlier proposed a 40% upward review in voice, data, and SMS tariffs in 2024. After consultations and a formal review process, the NCC permitted limited adjustments, leading banks to adjust related charges such as SMS alerts passed down to customers.
With more than 130 million active bank accounts in Nigeria, and mobile phones still being a primary communication tool for many, this fee hike will have wide-reaching financial implications, especially for low-income earners and rural customers who rely on SMS alerts for real-time transaction monitoring.
Banks have encouraged customers to explore digital banking channels as alternatives. Mobile apps, email notifications, and USSD services are promoted as cost-saving options.
Still, for many users, especially those without smartphones or internet access, SMS remains the most accessible means of staying informed about account activities.
“Kindly note that transaction alerts are important and help you keep track and stay in control of activities on your account,” the GTBank message added.
Wider Impact on Financial Inclusion
Critics argue that increased costs on basic banking services could undermine financial inclusion efforts, especially in rural areas. According to a 2023 report by Enhancing Financial Innovation & Access (EFInA), about 36% of Nigeria’s adult population remains unbanked. For this segment, cost barriers like SMS charges can further discourage engagement with formal financial institutions.
Telecom operators have also defended the tariff changes, pointing to rising diesel prices, taxes, and currency devaluation affecting network operations. According to industry analysts, SMS fees form part of broader operational costs which financial institutions often bundle into service charges.
While many banks offer customers the option to opt out of SMS alerts in favor of email or push notifications, doing so may expose them to delayed fraud detection, especially if digital platforms suffer downtime.
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