Fighting broke out on Monday in Kasuwan Magani community in Kaduna state leaving many houses and shops burnt down.
State police commissioner Austin Iwar told AFP that 20 suspects have been arrested and extra police have been put on the streets to try to quell the violence.
"The place is now calm. I was in the village yesterday to implore the community and traditional leaders to appeal to the warring youths to sheath their swords," Iwar added.
"We don't want to jump into conclusion as to what led to the mayhem. The speculation was that some Christian boys were not happy that their girls are befriending Muslim boys."
Local reports have indicated the death toll is higher than the police have reported.
In a statement signed by the Kaduna state Governor, Nasir El-Rufai, it states security agencies have been directed to investigate the cause of the crisis and arrest all parties involved.
Violence between Christian farmers and Fulani herdsmen has claimed thousands of lives across Nigeria's central states over the past few decades.
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