The building is said to be located on Oko Awo Street in the popular Jankara area of Lagos, close to King Ado Secondary School.
Firefighters and rescue agencies were swiftly deployed on the scene and battled the huge blaze.
Within minutes of the explosion, the fire spread to a nearby building, sending hundreds of residents, traders and shoppers fleeing in the usually boisterous market area.
As a result of the explosion, it was learnt that the building which had the shop under it and two others adjoining collapsed.
Residents of the three buildings, who were still celebrating the Christmas festivity mood but were still on beds to witness the boxing day, were affected during the explosions.
A score of other residents were said to be currently trapped in the debris of the collapsed three buildings.
As at press-time, officials of the Lagos State Emergency Management Agency (LASEMA), fire service, police, Nigerian Security Civil and Defence Corps (NSCDC) and others had visited the scene for rescue operations.
The exact casualty figure is yet unknown, although many injured persons have been rushed to the hospital with serious burns.
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