The rising cost of SMS transaction alerts has sparked discontent among bank customers in Abuja, Nigeria. Many individuals, interviewed by the News Agency of Nigeria (NAN), expressed their frustration with the increased charges and revealed their intentions to switch to email alerts as a cost-saving measure. They perceive the fee hikes as exploitative, particularly in light of existing transaction charges already levied on their accounts. Several customers cited instances where they felt unfairly burdened by multiple charges for single transactions, questioning the justification for these added costs and arguing that customers bear the brunt of these expenses. They also raised concerns about the potential for these seemingly small individual charges to accumulate into significant sums for the banks, contributing to their reported profits.
The dissatisfaction expressed by customers highlighted a recurring theme of perceived unfair practices by banks. One customer, Dorathy Azinge, described the SMS charge increase by GTCO as “very exploitative,” pointing out that the bank already deducts numerous other charges from her account, sometimes leading to a negative balance. Another customer, Elizabeth Abu, voiced her intention to opt for email alerts due to the increasing costs and also complained about a reduction in the capitalized interest on her account. She argued that charging customers for both the transaction and the alert is unjust and ultimately benefits the banks at the expense of their customers.
Clement Arubu, a customer of First HoldCo Plc, shed light on the cumulative effect of seemingly minor transaction charges. He pointed out that while individual debits might seem insignificant to customers, when multiplied across a large customer base, such as 10,000 customers, they amount to substantial sums for the bank. This perspective underscores the potential for banks to generate significant revenue through seemingly small, often overlooked charges. This accumulative nature of the charges further fuels the perception of exploitation among customers who feel they are being nickel-and-dimed for essential services.
The dissatisfaction extended beyond SMS charges to encompass other banking practices perceived as unfair. Catherine Itoha recounted her experience with a bank that failed to reverse over N20,000 debited from her account due to failed Point of Sale (POS) transactions, despite repeated efforts to resolve the issue. She called on banks to prioritize fair treatment of their customers, emphasizing that their existence depends on the patronage of these customers. Her experience highlights a broader issue of customer service and accountability within the banking sector, where customers often feel powerless in the face of unexplained charges and unresponsive institutions.
Esther Arthur, a Fidelity Bank customer, shared an anecdote that illustrated the disparity between advertised charges and actual deductions. She was charged N630 for withdrawing N10,000 from a First Bank ATM, despite the CBN-stipulated on-site ATM charge being only N100. Such discrepancies further erode customer trust and raise questions about the transparency of banking practices. These instances of overcharging contribute to the perception that banks are prioritizing profit maximization over fair and transparent customer service.
The customers’ collective call for regulatory intervention reflects their frustration with the perceived lack of accountability within the banking sector. Augustine Ode, a Zenith Bank customer, appealed to the Central Bank of Nigeria (CBN) to check the excesses of banks that allegedly defraud customers. This appeal underscores the need for greater regulatory oversight to protect consumer rights and ensure fair practices within the financial industry. The customers’ grievances and their call for CBN intervention highlight the crucial role of regulatory bodies in maintaining a balance between the interests of financial institutions and the rights of their customers. The case of GTCO increasing SMS charges from N4 to N6, citing increased telecom rates, further underscores the need for transparency and justification for such increases, particularly in an environment where customers already feel overburdened by various bank charges.
