Two people were reportedly stabbed in a clash between Yoruba and Hausa traders at the Lafenwa market in Abeokuta, the state capital of Ogun.
State police public relations officer Abimbola Oyeyemi confirmed the incident on Thursday, but said there were no deaths in the crisis.
The violence was allegedly caused by the death of a Hausa trader who was allegedly hacked by criminals suspected of being Yoruba.
Oyeyemi said four people were arrested while eight knives were recovered from them after the bloody clash between the two tribes.
The PPRO said: “Violence broke out when some small Hausa traders refused to pay the compulsory daily fee to the disbelievers in the market.”
He said the development infuriated the street kids, who descended on the Hausa traders and stabbed two of them.
He said: “No deaths have been recorded. Two people were injured.
“Those involved in the crime will be treated seriously; they will face the full weight of the law. “