From May 1, Deposit Money Banks (DMBs) across Nigeria have increased their SMS transaction alert charges by 50 per cent, following recent hikes in telecom tariffs approved by the Nigerian Communications Commission (NCC). Banks including Guaranty Trust Bank (GTBank) and Ecobank have informed customers of the adjustments, with SMS alerts now costing N6 per message.
GTBank announced the fee increase from N4 to N6, citing higher rates introduced by telecom service providers. Ecobank followed suit, raising its SMS charge from N5 to N6. Both institutions explained that the change stems from revised telecom tariffs and the rising cost of delivering SMS services, with GTBank noting the importance of SMS alerts in helping customers monitor transactions and prevent fraud.
However, customers are being given the option to opt out of SMS alerts and instead receive free email notifications. GTBank advised that those who prefer not to continue receiving SMS alerts can update their preferences via the bank’s website or customer support email.
The increase in bank alert charges comes in the wake of broader adjustments across the telecom sector. After operating with static prices for over a decade, telecom companies including MTN, Airtel, Globacom, and 9mobile successfully lobbied the NCC for a tariff review, citing rising energy costs, naira depreciation, and expensive infrastructure imports. In February, these firms raised the cost of voice calls and data plans, with the NCC eventually approving a 50 per cent increase in end-user tariffs to help keep the sector financially viable.
The impact has been swift. Basic services such as SMS and data have seen significant cost jumps. For instance, MTN’s 1.8GB data plan rose from N1,000 to N1,500, while its 20GB package increased from N5,500 to N7,500.
Despite the adjustments, telecom operators continue to face challenges, including frequent fibre cable cuts that have led to service disruptions and revenue losses. The ongoing economic pressures and operational costs in the sector are likely to keep prices high, at least in the near term.
As the banking and telecom industries pass increased costs on to consumers, many Nigerians may be forced to rethink how they access basic financial services. With email alerts still offered for free, more customers may shift away from SMS-based notifications in a bid to cut expenses.
