Police Commissioner Waheed Sanau said the plane was chartered from Associated Airline to fly from Lagos to Akure in Ondo state and crashed into open land near a tollgate shortly after taking off.
The front of the aircraft was completely destroyed, indicating it was the first part to hit the ground.
The wrecked remains, surrounded by security officers and rescue workers, lay about 30 metres from massive tanks storing aviation fuel.
Local news reports said the plane was carrying mourners and the body of former Ondo state Gov. Olusegun Agagu, who died on September 13.