At least five bodies have been recovered and one person is being treated for serious injuries.
The Associated Airlines plane was bound for Akure, which lies about about 140 miles (225km) north-east of Lagos.
The engine of the plane appeared to fail and the aircraft plunged to the ground and burst into flames, aviation officials said.
"There's a lot of smoke coming from the runway. There are firefighters rushing to the scene," Rasaki Rhakod, who runs a car service around the airport, was quoted by Reuters as saying.
Rescue efforts are continuing, however the death toll is expected to rise.
Aviation ministry spokesman Joe Obi said there were seven crew and 20 passengers on board.
Although Nigeria's air safety record has improved in recent years, the country has a history of major passenger plane crashes.
In June 2012, more than 150 people were killed after a dual engine failure caused a plane to crash in Lagos.
Lagos airport is a major hub for West Africa and saw 2.3 million passengers pass through it in 2009, according to the most recent statistics provided by the Federal Airports Authority of Nigeria.
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