In a move that has stirred reactions
among banking customers, several Nigerian banks have announced an increase in
SMS alert fees from ₦4 to ₦6 per message.
This adjustment follows the Nigerian
Communications Commission's (NCC) recent approval of a 50% hike in telecom
service charges, which raised the cost of SMS from ₦4 to ₦6, effective January
2025.
Understanding the Fee Adjustment
The increase in SMS alert fees is
primarily attributed to the rise in telecom service charges. Banks rely on
telecom operators to deliver SMS alerts, and the increased cost of these
services has been passed on to consumers.
According to the Central Bank of
Nigeria's (CBN) guidelines, banks are permitted to adjust SMS alert fees based
on cost recovery, provided they do not exceed the actual cost incurred.
Impact on Bank Customers
For many Nigerians, SMS alerts are a
critical tool for monitoring account activities, especially in areas with
limited internet access. The fee increase, though seemingly modest, could
accumulate over time, particularly for customers who engage in frequent
transactions.
This change may disproportionately
affect low-income earners and those in rural areas who rely heavily on SMS
alerts for financial transparency.
Regulatory Oversight and Consumer
Protection
The CBN has emphasized the importance
of transparency and fairness in bank charges. Customers are encouraged to
review their bank statements and report any unauthorized or excessive charges.
The CBN's Consumer Protection
Department has reiterated that banks must adhere to approved fee structures and
ensure that customers are not overcharged.
Alternatives and Recommendations
To mitigate the impact of increased
SMS alert fees, customers may consider the following alternatives:
- Email Alerts: Many banks offer free
email notifications for account activities.
- Mobile Banking Apps:
Utilizing bank apps can provide real-time transaction updates without
additional SMS charges.
- USSD Codes: While USSD services also incur
charges, they may offer a cost-effective alternative for certain
transactions.
It's advisable for customers to
consult with their banks to explore these options and choose the most
cost-effective method for receiving account alerts.
Final Thouhgts
The increase in SMS alert fees
reflects broader economic adjustments within Nigeria's telecommunications and
banking sectors.
While the change aims to align
service costs with operational expenses, it's essential for banks to maintain
transparency and for customers to stay informed about their rights and
available alternatives.
For more information or to report
concerns about bank charges, customers can contact the CBN's Consumer
Protection Department or visit their official website.
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