Police fired gunshots and teargas canisters to disperse Yoruba Nation agitators at the Ojota, Lagos, venue of the protest, causing panic in the area.
The protesters had defied the heavy presence of police and operatives of other security agencies to commence the rally banned since Thursday by the state police command.
The police and troops of the Nigerian Army had taken over the venue of the rally in the early hours of Saturday morning to prevent the rally, but the protesters later stormed the venue and attempted to commence the event.
But the heavily armed security agents vehemently resisted them, firing live shots and teargas canisters at the agitators.
The sporadic shooting caused pandemonium and tension in Ojota as residents and commuters scampering to safety while many ran helter-skelter when the gunshots from the security operatives persisted.
Many traders hurriedly closed their shops for fear of being caught in the ensuing commotion.
Police also succeeded in arresting some of the agitators.