Governor Makinde has imposed 24-hour curfew on Shasha market.
CityNews Nigeria reports that the market has also been ordered shut down indefinitely.
The decision, according to Governor Seyi Makinde, follows the continued killings and destruction of property in the market.
The Chief Press Secretary to Governor Makinde, Taiwo Adisa confirmed the development on Saturday.
The clashes rocking the market continued Saturday morning with youths unleashing mayhem on one another in the area.
Residents said they had fled the entire area and could not pass the night in their homes on Friday night for fear of overnight attack from any of the warring groups.
Sources said despite the deployment of police and security agencies in the area, yet to be identified groups razed the Shasha market overnight by burning down some shops, kiosk and wares of some traders.
The source said security operatives deployed to the area could not do much as they were only stationed by the main road while clashes and burning of the market was ongoing in the interior.
Another source said people in the area woke up to another round of clashes as both youths from the Yoruba and Hausa extractions vowed to square it out.
The Yoruba youths, who were said to be hellbent on avenging the death of a cobbler after being reportedly hit with charm by a Hausa cart pusher.
The source accused the security operatives on the ground of only standing guard to protect the Seriki Shasha while the house of the Baale Shaha was left unattended to.
Another unconfirmed source said the angry youths from extractions in their hundreds are already engaging in free- for- all.
Amid the fear of an ethic uprising, many residents of Shasha community on Friday relocated from their homes to neighbouring communities to avert being caught in the web of a reprisal attack by conflicting groups.
The peace in the community was stalled in the wake of the crisis that ensued between some hoodlums and the Hausa traders following the death of one cobbler in the market.
The clash between the two groups in the market reportedly degenerated towards the evening on Friday.