At least five people have been killed in a clash between Yoruba and Hausa traders in the Sabo area of Ile-Ife in Osun state.
A resident of the ancient city said the situation started on Tuesday, but escalated on Wednesday morning.
Adeyeye Ogunwusi, ooni of Ife, reportedly intervened through seeking the assistance of security operatives.
The security agents deployed in the town were said to have foiled an attempt of aggrieved Yoruba residents to gain access into Sabo community, which is predominantly occupied by Hausa people.
The angry mob then stormed Lagere, a neighbouring community, and attacked Hausa traders there.
A witness said security agents found it difficult to control the rampaging mob.
Many have fled Ife as a result of the crisis, which has also led to the destruction of property worth millions of naira.
The cause of the clash is not yet known.