Nigerian Banks have begun to increase the cost of SMS transaction alerts to customers by up to 50%, which they are blaming on tariff hike by telecommunications firms.
Fidelity Bank in a message sent to customers said the adjustment is necessary to ensure it continues delivering secure, timely, and reliable transaction notifications to customers.
“Please be informed that due to an industry-wide increase in SMS costs by telecommunications providers, the charges for SMS transaction alerts have been revised from ₦4 to ₦6 per SMS effective today, May 1, 2025,” Fidelity Bank said.
“We assure you that Fidelity Bank will continue to provide value-added services and innovative solutions to enhance your banking experience.”
Fidelity Bank added that SMS alerts sent to international phone numbers may attract higher charges. Transaction alerts are important and help bank customers keep track of and reduce fraud and unauthorized debits, as well as monitor other activities on their accounts.
The increase from N4 per SMS to N6 per SMS is equivalent to a 50 percent hike by the banks.
The Nigerian government raised telecommunications tariffs by 50% this year to offset the impact of the collapse in the naira and surging inflation.
The tariff increase — the first in more than a decade — was half of what companies such as MTN had asked for to weather harsh economic conditions, including a 41% depreciation in the naira against the dollar last year and inflation running near a three-decade high.
“We commenced phased implementation of the new tariff structure in mid-February 2025 across our data and voice bundles, with the majority of adjustments taking effect in March,” MTN Nigeria CEO Karl Toriola said in notes accompanying its First Quarter (Q1) 2025 earnings.
Guaranty Trust Holding Company (GTCO) major banking subsidiary GTBank also sent out notices to customers informing them about the SMS alert cost increase.
“Please be informed that effective Thursday, May 1 2025, the SMS transaction alert fee will increase from ₦4 to ₦6 per message. This adjustment is due to a recent increase in telecom rates as communicated by the telecommunication service providers,” GTBank said.
Money Central
