Katangowa, a popular second-hand cloth market in Agbado/Oke-Odo Local Council Development Area, caught fire on Monday morning.
Herald Nigeria leant that fire started around 3 am, and has destroyed tonnes of second-hand clothes and shops.
Officials of the Lagos State Emergency Management Agency have been mobilised to quench the fire.
Policemen from the nearby Oke Odo Divisional Headquarters are also at the scene to prevent the looting of unaffected shops.
There were, however, no casualty in the fire incident.