The accident is said to have occurred when the driver lost control of the tanker truck and crashed. 97 people were "burned to ashes" on the spot, and many more died later in hospital, according to authorities quoted by AFP.
Videos from the accident show a massive fire and bodies scattered along the road.
Many of the victims are said to have tried to collect spilled fuel after the tanker truck crashed when the explosion occurred. Similar disasters have occurred before in Nigeria, where fuel prices have tripled since the beginning of last year.
People gathered at the accident site, which is why there were so many victims, says police spokesperson Lawan Shi'isu Adam to Nigeria's state news agency Nan.
Eye witnesses describe in local media how the fire quickly developed into an enormous inferno – so fast that people couldn't escape.
People ran in all directions, screaming for help, says resident Sani Umar to a local TV station.
The explosion in Majia in Jigawa state, near the border with neighboring country Niger, occurred late on Tuesday evening. A mass funeral was held on Wednesday morning.
