The tragedy is the latest such accident at a time when petrol has become a precious commodity in the country, which is suffering its worst economic crisis in a generation. The fuel tanker veered to avoid another vehicle and crashed in the town of Majiya, Jigawa state late on Tuesday, police said.
Following the crash, residents crowded round the overturned tanker to gather the leaking fuel.
Student Sanusi Lawan told AFP he had heard "shouts of joy" and rushed to join hundreds of people scooping up the fuel with buckets. The 21-year-old had taken his bucket home and his brother had persuaded him not to return for more, when they heard "a huge explosion and cries of pain and fright".
"We rushed to the place and it was a scene of horror," Lawan said. "People were running while on fire and shouting for help." "Had I not listened to my brother’s advice, I would have been among the dead," he said.
The national emergency agency said 147 people had died.
Local government chairman Hambali Zarga told AFP this figure only accounted for bodies buried in one mass grave, and warned the toll was likely to rise.
Dozens of victims were "burnt beyond recognition," he told AFP at the graveside.