The incident occurred in a village of the southern Rivers state where people had rushed to collect petrol that had spilled from a tanker that had overturned.
Eyewitnesses said the fuel-laden tanker skidded off the road, spilling its contents, while trying to avoid a head-on collision with a Toyota Corolla car.
A spark led to a fire that engulfed the area, killing scores of villagers and injuring many others.
A government official said he had counted 200 dead bodies in the fire accident that happened near Mbiama in Ahoada West Local Government Area.
National Emergency Management Agency (NEMA) spokesman, Yushua Shuaib had told PTI earlier that the death toll was 95 with 18 injuries in the accident.
But Rivers State Commissioner for Health, Sampson Parker said he counted more 200 corpses at Ahoada General Hospital.
“I will describe this as the single worst incident that has happened to Rivers State since the Civil War,” he said referring to 1966 Nigeria-Biafra civil war in which more than a million persons died.
A man, who identified himself as Isaac Nwanedi, said the tanker driver had warned the people rushing for the spilled fuel against coming near to the vehicle.
“The villagers ignored the driver's warning to leave the scene of the accident. But the commercial motorbike riders started calling their colleagues with their mobile phones and before you know it they were everywhere at the scene collecting fuel,” he said.