It happened as people lined up to refill gas cylinders in time for cooking Christmas meals in Nnewi, a predominantly Christian community in the southeast of the country.
The Associated Press news agency said 100 bodies had been seen by the time firefighters were able to put out the fire, which apparently raged for hours.
Dozens more are said to have been injured.
The fire broke out on Thursday when the truck had stopped discharging gas.
One witness said the fire “exploded like a bomb” and that many of the bodies were charred beyond recognition.
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