Section 28: Offences.

(1) Any person who -
(a) fails to pay into the account of an organisation and within the specified period any contribution liable to be paid under this Act; or
(b) deducts the contribution from the employee's wages and withholds the contribution or refuses or neglects to remit the contribution to the organisations concerned within the specified time,
commits an offence.
(2) A person guilty of an offence under subsection (1) of this section is liable on conviction -
(a) in the case of a first offence, to a fine of N100,000 or 500 per centum of the amount of the contribution involved, together with accrued interest on the contribution, whichever is higher, or imprisonment for a term not exceeding two years or less than one year or to both such fine and imprisonment; and
(b) in the case of a second or subsequent offence, to a fine of N200,000 or 1000 per centum of the amount of the contribution involved together with accrued interest on the contribution, whichever is higher, or imprisonment for a term not exceeding five years or less than two years or to both such fine and imprisonment.