Why UBA Deducts ₦11.25 Naira From Your Account
UBA deducts ₦11.25 from customer accounts mainly as a transaction alert charge, most often linked to SMS notifications sent after account activities such as transfers, withdrawals, deposits, POS payments, or card usage. This deduction is not arbitrary or hidden; it represents the cost of providing real-time transaction alerts to customers, including statutory taxes applied to such services. Each time an eligible transaction occurs and an SMS alert is successfully sent to your registered phone number, UBA recovers the cost by debiting ₦11.25 from the account involved in that transaction.
The most common reason for the ₦11.25 deduction is the SMS transaction alert service. Nigerian banks rely on telecommunications networks to deliver instant alerts, and these networks charge banks per message sent. UBA offers SMS alerts to help customers track account movements, detect unauthorized transactions early, and maintain better control over their finances. Since this service involves an external cost, the bank passes it on to customers who choose to receive alerts via SMS.
The Role of VAT in the ₦11.25 Charge
A significant part of the ₦11.25 deduction is Value Added Tax (VAT). In Nigeria, digital and electronic services such as SMS notifications attract VAT under existing tax laws. When UBA charges for SMS alerts, VAT is applied to the base service cost, resulting in the final ₦11.25 debit. This means the entire amount does not go to the bank; a portion is remitted to the government, while the remainder covers service delivery expenses.
Moreover, the ₦11.25 charge applies per SMS alert sent, not based on the value of the transaction. Whether the transaction is ₦1,000 or ₦500,000, the alert fee remains the same. Customers who carry out multiple transactions in a day may therefore see several ₦11.25 deductions, each corresponding to a separate alert. This is especially noticeable for business owners, POS operators, and individuals with high transaction volumes.
Many customers mistakenly assume the ₦11.25 deduction is a transfer fee or card maintenance charge. Transfer fees are deducted at the point of initiating a transfer, card maintenance fees are usually charged monthly, and stamp duty applies to qualifying deposits. The ₦11.25 deduction is strictly tied to transaction alerts and is independent of other banking charges.
Regulatory Approval and Transparency of Charges
The ₦11.25 SMS alert charge is included in UBA’s official schedule of charges, in line with Central Bank of Nigeria guidelines. Nigerian banks are permitted to charge for value-added services like SMS alerts, provided customers are informed and given alternative options. UBA complies with these requirements by allowing customers to activate or deactivate SMS alerts based on preference.
UBA Mobile and Internet Banking to Monitor Transactions
UBA’s mobile app and internet banking platforms, offer real-time transaction updates without SMS charges. These digital platforms allow users to check balances, review transaction history, and receive in-app notifications. For customers who are comfortable using digital banking tools, this option provides full visibility into account activity while minimizing additional fees.
UBA offers practical alternatives such as email alerts and mobile banking notifications. Understanding why this deduction occurs empowers customers to make informed choices about how they receive account information and how much they spend on banking services.
For finance-conscious individuals and businesses, regularly reviewing bank statements, understanding applicable charges, and choosing the right alert options are essential steps toward better money management. The ₦11.25 UBA deduction is small in isolation, but awareness and proper configuration of banking preferences can make a meaningful difference over time, especially in a high-transaction environment.
Read Also:
- Stamp Duty: What It Is & Why Banks Deduct It
- Why GTBank Deducts ₦11.25 Naira and Other Small Charges
- SMS Alert charges in Nigeria | How to stop them
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