Fidelity Bank and Union Bank have announced a 50% rise in the cost of SMS transaction alerts, increasing the charge from N4 to N6 per message. The adjustment, effective from Thursday, 1 May 2025, follows an industry-wide increase in SMS service rates by telecommunications providers.
Fidelity Bank explained the decision in a public statement issued via its official X handle, attributing the move to higher SMS delivery costs imposed by telcos. The bank emphasised that the change was essential for maintaining the secure and efficient delivery of real-time transaction updates to customers.
“Please be informed that due to an industry-wide increase in SMS costs by telecommunications providers, the charges for SMS transaction alerts will be revised from N4 to N6 per SMS effective May 1, 2025. This adjustment is necessary to ensure we continue delivering secure, timely, and reliable transaction notifications to you,” Fidelity Bank stated.
The bank also noted that SMS alerts sent to international numbers may incur additional charges, highlighting the wider effect of rising telecom expenses on cross-border communications.
Union Bank issued a similar announcement to its customers, confirming that the increased charge would take effect from the same date.
“Our Telecommunication Service Providers have recently reviewed their service rates applicable to SMS notifications upwards. Consequently, effective Thursday, 1 May 2025, your SMS Transaction Alert Fee will increase from Four Naira (N4.00) to Six Naira (N6.00) per message. Please note that alerts to international phone numbers are subject to higher charges.”
In its message, Union Bank encouraged customers to retain their SMS alert subscription, describing the service as a critical tool for real-time account monitoring.
“Transaction Alerts are essential as they help you monitor and control your account activities in real time. We encourage you to retain your subscription to this service.”
Nonetheless, the bank acknowledged that some customers might wish to opt out and provided instructions for doing so.
“If you would like to opt out of receiving Transaction Alerts via SMS, please update your preferences by completing the Transaction Alert form available on our website. You may submit the completed form to [email protected] or visit any of our branches nationwide for assistance.”
Fidelity Bank’s decision mirrors a recent move by Guaranty Trust Bank (GTB), which also revised its SMS transaction notification charges from N4 to N6. Like Fidelity, GTB cited the increased cost of telecom services as the rationale behind its adjustment, which also took effect on 1 May 2025.
The changes come amid financial strain within Nigeria’s telecommunications industry, which has faced surging operational costs. These include higher energy prices, a weakened naira affecting the cost of imported infrastructure, and recurring disruptions to fibre-optic networks. Despite these pressures, telecom tariffs had remained unchanged for over ten years.
In response, operators submitted a formal request to the Nigerian Communications Commission (NCC) for a 100% increase in tariffs. The NCC eventually approved a 50% rise, aiming to balance service affordability for consumers with the sustainability of the telecom sector.
The approval has triggered noticeable price hikes in telecom services, notably in SMS and data charges. For instance, MTN’s monthly 1.8GB data plan has increased from N1,000 to N1,500, while the 20GB plan now costs N7,500, up from N5,500.
These developments underscore a wider realignment in Nigeria’s digital service pricing, with implications for both individuals and businesses. As SMS charges rise, banks and customers alike may begin to consider alternative notification options such as mobile apps and email alerts to reduce costs.
The evolving economic landscape continues to challenge the financial and telecommunications sectors, with regulatory decisions poised to play a critical role in shaping future service delivery and pricing strategies.