Bank - NEWS AGENCY OF NIGERIA

Lydia Beshel
May, Sun, 2025

Bank SMS charge increase: Customers opt for e-mails

244 total views today

SMS
By Ginika Okoye

Some bank customers, especially those of Guaranty Trust Holding Company (GTCO) say they will opt for electronic mail alert from their banks to cut costs and reduce charges on their accounts.

Some of the customers who spoke to the News Agency of Nigeria (NAN) in Abuja on Sunday, said they would deactivate the Short Message Services (SMS) transaction alert linked to their accounts.

Mrs Dorathy Azinge, a customer of GTCO, described the increase in SMS charges as exploitative.

Azinge said that in spite of various transaction charges debited from her bank account on a daily basis, the bank still increased SMS charges.

”This move of increasing SMS charges is very exploitative even though they cited telecommunication charge.

”What about all the numerous unwarranted debits that I get from my account, and they are using telecommunication increase as yardstick to increase theirs.

”GT will remove different charges from my account until they give me minus balance,” she said.

Another GTCO customer, Ms Elizabeth Abu, said she would visit her bank to opt for her transaction alerts to be sent to only her e-mail address.

Abu who complained about the reduction in her capitalised interest on her account, said the numerous debits were becoming frustrating.

”It does not make sense for the bank to charge me for a transaction I did and also charge me for the alert they sent.

”It means that customers are the ones paying heavily for all these services.

” These charges are reflecting on the profits declared by these banks and we are the ones paying for this,” she said.

Mr Clement Arubu, a customer with First HoldCo Plc, said he received various transaction debit alerts from his bank totalling N1, 050 monthly.

Arubu said the debits were huge, especially when calculated between 10,000 customers of the bank.

”Most customers receive these alerts and neglect them because to them, the money is small but when you debit the same money from about 10,000 customers then, you can be sure that the money is huge,” he said.

Mrs Catherine Itoha, a customer of GTCO, said the bank had yet to reverse over N20,000 debited from her account through various failed Point of Sale (PoS) transaction since about 11 months.

Itoha urged some banks and their staff to adopt principles of fair practice in handling their customers.

”Customers are the reason why banks are in existence so, we deserve to be treated fairly.

”GTB debited me in about four different transactions that I did but up till now, they did not reverse any of these monies.

”I visited the bank, filled forms, spoke to their staff personally but still the issue was not resolved since last year.

”If this money did not go to a staff, it means it is part of their profit,” she alleged.

Mrs Esther Arthur, a Fidelity Bank customer alleged that some of the banks were making profits from charges on customers for their transactions.

Arthur described the situation as sad and frustrating

”I withdrew N10,000 from a First Bank Automated Teller Machine (ATM) and the machine showed me that I will be charged N100 because it wasn’t my bank.

”When I finished the transaction, to my greatest surprise an alert came into my phone and when I checked it, it was an alert of N630.00 against the N100 on-site ATM charges that the Central Bank of Nigeria (CBN) instituted.

”This is so sad,” she said.

Mr Augustine Ode, a Zenith Bank customer, appealed to the CBN to check excesses of some banks that were allegedly defrauding customers.

The News Agency of Nigeria (NAN) reports that GTCO had informed its customers of the SMS transaction alert fee increase from N4 to N6 per message.

The bank had said that the adjustment was due to a recent increase in telecom rates.

GTCO also informed its customers who preferred not to receive transaction alerts via SMS, to update their preferences by completing the transaction alert form on the bank’s website and send to gtbankmailsupport@gtbank.com. (NAN)

Edited by Ese E. Eniola Williams

Bank charges: Economist wants CBN, policymakers to address citizens’ concerns

Tosin Kolade
Mar, Wed, 2025

Economy/Business

Bank charges: Economist wants CBN, policymakers to address citizens’ concerns

322 total views today

By Emmanuel Oloniruha

An Economist, Dr Augustine Kutu, has advised the Federal Government, Central Bank of Nigeria (CBN), and policymakers to address concerns of Nigerians on the new charges on bank transactions.

Kutu, an Assistant Professor, University of Western Ontario-Canada, gave the advice in an interview with the News Agency of Nigeria (NAN) on Wednesday in Abuja.

He noted that while citizens had expressed concerns that the policy reduces their purchasing power, imposes a financial burden, and discourages savings, banks argued that the charges were necessary to offset their operational expenses and stimulate the economy.

“As part of the monetary policy framework, CBN regulates bank charges and deductions, including those related to cash transactions and account maintenance.

“These charges vary across banks and are dependent on the specific type of transaction.’’

According to CBN, the reintroduction of the charges on certain cash deposits and withdrawals is to promote modern and efficient payment system.

“It aims to reduce the country’s reliance on cash transactions, which can be costly and hinder economic development,’’ the don said.

Kutu said it was obvious that the policy would discourage excessive cash handling, minimise operational costs, and encourage Nigerians to adopt alternative payment methods, such as digital transactions.

He said that the country’s current economic climate posed significant challenges to the policy’s effectiveness.

“Paramount among these challenges is security concerns, as electronic payment systems are vulnerable to cyber threats and data breaches.

“Additionally, unreliable infrastructure, including limited access to internet and power, hinders the wide spread adoption of digital payment methods.

“The low digital literacy, particularly in rural areas, and the recent approval of fifty per cent hike in telecom tariffs may continue to discourage Nigerians from embracing the new policy.

“To ensure the successful implementation and adoption of the policy, policymakers must first tackle pressing customer concerns, including the steady increase in telecom tariffs, cybercrime fears, and technical issues,’’ he said.

Kutu also advised the CBN to consider other measures like implementing a downward review of Automated Teller Machine (ATM) and (Point of Sales (POS) transaction service fees, as well as interbank charges to decrease financial burdens on customers.

“There should also be an increase access to ATMs and POS terminals, particularly in rural areas, to promote financial inclusion,’’ he said.

Kutu also urged development of Information and Communication Technology (ICT) infrastructure in rural areas to bridge the digital divide and facilitate access to digital financial services. (NAN) (www.nannews.ng)

Edited by Ese E. Eniola Williams