Nigerian Banks Impose N6 SMS Transaction Alert Fee Amid Economic Strain

 Starting May 1, 2025, major Nigerian banks, including Access, Zenith, and UBA, began charging N6 per SMS for transaction alerts, a move approved by the Central Bank of Nigeria (CBN) to offset rising operational costs.

The fee, applied to all account holders receiving SMS notifications, adds to the financial burden on millions of Nigerians grappling with 33.2% inflation and a 70% naira devaluation since 2023, per National Bureau of Statistics. The CBN’s directive aims to standardize charges, replacing varied fees ranging from N4 to N10, but has sparked concerns over affordability in a cash-heavy economy.

The N6 fee, equivalent to $0.004 at N1,600/$1, applies to debit and credit alerts, with banks encouraging customers to switch to free email or app-based notifications. However, only 45% of Nigerians have internet access, and 60% of bank customers rely on SMS due to low digital literacy.

The average Nigerian, conducting 10 transactions monthly, now faces N60 in additional costs, a significant burden for low-income earners on N70,000 minimum wages, per the Nigeria Labour Congress (NLC). Banks argue that SMS costs, driven by telecom tariffs, have risen 200% since 2022, per the Nigerian Communications Commission.

The policy follows a 2024 CBN mandate requiring banks to enhance cybersecurity and customer service, with SMS alerts costing the sector N10 billion annually, per the Bankers’ Committee. Customers can opt out of SMS alerts, but many rural account holders lack smartphones, leaving them vulnerable to fraud without notifications. The NLC criticized the fee as “insensitive,” demanding its reversal, while the Consumer Protection Council plans to review its legality. In 2024, similar charges sparked protests, with 5,000 Lagos residents rallying against bank fees.

The fee’s implementation coincides with broader economic reforms, including a 223% electricity tariff hike and fuel prices at N1,000 per liter, per the Nigerian Electricity Regulatory Commission. Analysts warn that additional costs could erode trust in the banking system, where 40% of adults remain unbanked, per the IMF. The CBN has pledged to monitor compliance, but without subsidies for low-income customers, the fee risks deepening financial exclusion in Nigeria’s struggling economy.