Section 20: Offence and penalty for failure by an employer to deduct or pay deductions

(1) An employer who-
(a)
fails to make deductions from the basic salaries of his employees as required by this Act; or
(b)
deducts any sum of money from the basic salaries of his employees for the purpose of the Fund and fails to remit the money so deducted to the bank,
is guilty of an offence under this Act.
(2) A person guilty of an offence under subsection (1) of this section is liable on conviction, in the case of -
(a) a body corporate, to a fine of N50,000; and
(b) an individual who is a staff in the employment of an employer and who is authorised to make the deduction or payment to the bank, to a fine of N20,000 or imprisonment for a term of five years or to both such fine and imprisonment.
(3) A self-employed person who fails to make deductions or deducts and fails to remit to the bank any money due to the Fund is guilty of an offence under this Act and liable on conviction to a fine of N5,000 or to imprisonment for a term of one year or to both fine and imprisonment.
(4)
A person who prevents or obstructs the deduction or remittance of the contribution due to the bank under this Act is guilty of an offence and liable on conviction to a fine of N5,000 or to imprisonment for a term of one year or to both such fine and imprisonment.
(5) The institution of proceedings or imposition of a penalty under this section shall not relieve any employer or self-employed person from liability to pay to the bank the money deducted by him for the purpose of the Fund.