Dozens of people were feared killed following an explosion from a fuel tanker which flipped near a village in north-central Nigeria, according to local officials and witnesses on Tuesday.

At least 10 charred bodies were earlier recovered from the scene, while at least 50 others were confirmed to have been wounded following the incident in Ahumbe village in the northern state of Benue on Monday, the local road safety police said.

However, witnesses said no fewer than 50 persons were killed as the fire spread across the ever busy Makurdi-Aliade highway in the state, igniting nearby shops.

Most of the victims were people who attempted to scoop fuel from the fallen tanker, said Aliu Baba, head of the local road safety in Benue.

According to him, the fuel tanker had skidded as the driver avoided a pothole in the area. The vehicle flipped and caused the damage.

"Unfortunately, the tanker fell in a neighborhood that has shops. They all lost their goods to the fire," Baba said.

One witness said it was while residents were scooping the fuel that an 18-seater bus rammed into the fuel tanker, causing the explosion.

Local police said they have launched an investigation into the incident.