Thousands of people are abandoning their homes and businesses around Shasha Market in Ibadan, the Oyo State capital.
The Shasha exodus follows an ethnic clash that broke out between Hausas and Yorubas in the area last Thursday.
At least 11 people were buried on Sunday in the aftermath of the violence which also led to the burning of market stalls, houses and vehicles.
Up to 5,000 Hausa traders, women and children displaced by the violence are taking refuge at the residence of the Seriki Shasha, Haruna Maiyasin, and the International Institute of Tropical Agriculture (IITA) in Ibadan.
Maiyasin says he is housing 3,000 of those displaced persons.
A source in the Hausa community said 20 persons who were killed in the violence were buried at the Akinyele Graveyard in Ibadan.
The charred remains of eight other people killed during the crisis were still at the police station in the Shasha area as of Sunday evening, Daily Trust reported.
There is still tension in the area even after Governor Seyi Makinde visited on Sunday. Ondo governor Rotimi Akeredolu was also with Makinde who was booed by Shasha residents for his “poor handling of security” in Oyo.
Yoruba locals were said to have told Makinde not to visit the leadership of the Hausa community whom they accuse of failing to caution their people.
Makinde and Akeredolu called for calm.
President Muhammadu Buhari has vowed stop at nothing to protect every Nigerian from ethnic attacks.