Six survivors have been rushed to the hospital, two in critical condition, Joe Obi, spokesman for Nigeria's Aviation Ministry, told The Associated Press.
He said the aircraft was carrying 20 people - 13 passengers and seven crew members.
Federal Aviation Agency spokesman Yakubu Dati said the Brazilian-made turboprop Embraer-120 crashed at 9:20 a.m. (0820 GMT) shortly after taking off from Murtala Muhammed International Airport.
Police Commissioner Waheed Sanau said the plane was chartered from Associated Airline to fly from Lagos to Akure in Ondo state and crashed into open land near a tollgate shortly after taking off.
The front of the aircraft was completely destroyed, indicating it was the first part to hit the ground. The wrecked remains, surrounded by security officers and rescue workers, lay about 30 meters (yards) from massive tanks storing aviation fuel.
Local news reports said the plane was carrying mourners and the body of former Ondo state Gov. Olusegun Agagu, who died on Sept. 13.
Dati said Agagu's casket and the black box that records data from the aircraft had been recovered.
The pilot detected a fault soon after taking off and tried to return to the airport for an emergency landing but did not make it, said another police official, who spoke on condition of anonymity because Lagos airport is not included in his duties. He said aviation officials were discussing a possible engine failure.
Nigerian airlines and airports have a notoriously poor safety record.