Section 7: Requirements in respect of securities.

(1) For the purposes of this Act a security must-
(a) be given either by an insurer approved by the Minister or by a person, company or body of persons approved by the Minister carrying on the business of giving securities of a like kind; and
(b) consist of an undertaking by the giver of the security to make good, subject to any conditions contained therein, any failure by the owner of any passenger or other motor vehicle or such other persons or classes of person as may be specified in the security duly to discharge any such liability as is required to be covered by a policy of insurance issued under the provisions of this Act which may be incurred by him or them, and such security shall in the case of an undertaking relating to the use of a passenger vehicle be up to an amount of not less than fifty thousand naira and in any other case of not less than ten thousand naira.
(2)
A security shall be of no effect for the purposes of this Act unless and until there is issued by the person giving the security to the person to whom it is given a certificate, in this Act referred to as a certificate of security, in the prescribed form and containing such particulars of any conditions subject to which the security is issued and of such other matters as may be prescribed.