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Last updated August 22, 2025
SMS stands out as one of the most universally accessible communication channels, capable of reaching even the most remote locations where internet connectivity is scarce or unreliable.
SMS boasts significantly higher open and response rates compared to emails. Studies have shown that SMS open rates can reach as high as 98%, while email open rates typically hover around 20%.
This makes it a perfect fit for Nigeria’s diverse landscape, which includes rural and underserved areas where infrastructure may be lacking.
Nigeria’s population of over 220 million people represents a massive potential customer base for businesses, particularly in the financial sector. Mobile penetration rates have reached 87% with 172 million mobile subscribers. This is why lenders must capitalize on SMS because it guarantees broad access to customers.
The mobile-first nature of Nigeria’s population is important for lenders, especially when offering nano and microloans that cater to low-income individuals. Often, these customers lack reliable access to the internet or advanced smartphones, meaning they rely primarily on basic SMS functionality.
Compared to app notifications or call centers, SMS is more affordable and requires less infrastructure.
An SMS Sender ID is a customizable alphanumeric identifier (up to 11 characters) that replaces the standard phone number in the “from” field when an SMS is delivered.
So, rather than your customers seeing a string of digits they don’t recognize, they’ll see something like “YourBank” or “QuickLoan.” It’s a simple but powerful way to show them it’s really you reaching out.
Why do lenders need an SMS Sender ID?
The only thing lenders and borrowers trade in other than money is trust. In a market where loan scams and fraud are prevalent, borrowers are naturally wary of unfamiliar numbers.
Seeing a familiar or trusted name immediately lowers the psychological barriers to engaging with the message. The customer is more likely to open the SMS and act on it.
Also, fraudsters can easily send fake SMS pretending to be lenders. With a branded Sender ID, lenders can protect their customers by offering them a reliable indicator that a message is authentic.
Like a child knows its mother, customers can immediately recognize you with an SMS sender ID.
Borrowers may receive loan offers, alerts, or payment reminders from multiple sources. A clear, branded Sender ID can create a sense of immediacy and importance that drives prompt action.
By the time you send messages on a regular basis, you reinforce your presence in the borrower’s life, building a stronger, more personalized relationship over time.
For lenders providing nano and microloans, communication is frequent and often urgent. This includes notifications about loan approvals, payment reminders, disbursements, or warnings about overdue payments.
If your borrowers receive SMS from different, unfamiliar numbers from you, they may find it confusing to track information you send to them.
In Nigeria, financial institutions are heavily regulated, and maintaining transparent communication is part of the deal of compliance.
The Nigerian Communications Commission (NCC) oversees mobile communications in Nigeria, and having a verified SMS Sender ID aligns lenders with these regulatory requirements, making sure that their messages are delivered without interference.
Making sure all your messages are clearly branded shows you respect the rights of consumers to know exactly who they are interacting with.
As such, there’s less risk of miscommunication or fraud.
To get an SMS Sender ID as a lender in Nigeria, here’s the step-by-step process:
Start by creating an account with a bulk SMS provider, any of the providers listed above. You can usually register for free.
Each telecom operator in Nigeria (MTN, Airtel, 9mobile, Glo) requires a formal application letter. These templates can usually be downloaded directly from the bulk SMS provider’s platform or the operator’s website. Make sure you fill in your company details and print them on your official letterhead.
You will need:
Once your documents are ready, you can upload them via the SMS provider’s platform. Submit your requested sender ID, sample message you intend to send, company details, and the supporting documents.
The telecom operators will review your application, which typically takes between 1 to 5 business days. After approval, you’ll be notified, and your Sender ID will be activated for use.
During the registration process, it’s important to follow all the guidelines to avoid delays or rejection of your application. If issues arise, bulk SMS providers often offer customer support to help you through the process
Route Mobile is a global communication provider offering messaging services like SMS, voice, and email. It’s ideal for enterprises needing secure, reliable, and scalable messaging solutions across various communication channels.
Vanso, part of Interswitch Group, is known for providing bulk SMS services through their secure and reliable platform. They offer SMS APIs, a user-friendly bulk messaging portal, and a focus on delivering financial services messages, making them a top choice for fintech companies. Their integration with Interswitch adds a layer of trust for financial transactions.
Infobip is a global player offering more than just SMS. They’ve got omnichannel messaging options like email and WhatsApp, plus advanced analytics. If you need something with all the bells and whistles, Infobip is worth checking out.
Featured read: How to use Infobip with Lendsqr as an SMS provider
Twilio is a big name when it comes to flexible, pay-as-you-go bulk SMS. It’s known for its powerful API, making it super easy for businesses of any size to integrate SMS messaging. Plus, it supports international messaging too!
HollaTags provides affordable and efficient bulk SMS services, focusing on custom sender IDs, real-time message delivery, and an easy-to-use interface. They also support API integration and offer solutions for SMS marketing and communication with customers at scale. The platform is well-suited for businesses looking for cost-effective yet reliable bulk messaging solutions.
Clickatell is a go-to for businesses that need scalable solutions. They offer tiered pricing, so you can pick the plan that fits your needs. Whether you’re handling customer service, marketing, or notifications, Clickatell’s got something for you.
Termii is a growing player in Africa’s communications space, offering omnichannel messaging that includes SMS, email, and voice. It stands out with its user verification tools like OTPs, two-way messaging, and a robust API that integrates well with websites and apps. They provide flexible payment options and focus on ensuring message delivery to hard-to-reach customers.
We’ve looked at what an SMS Sender ID is, why it matters for lenders, and the step-by-step process for acquiring one. Any of the providers have different strengths, so it’s all about what fits your business needs best.
One thing is for sure: With Nigeria’s massive mobile phone user base and SMS’s ability to reach even remote areas, this communication channel remains vital for you as a lender, especially if you’re providing nano and microloans.
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