The police have confirmed the development.
Two people were on Tuesday killed when a bomb exploded at the International Market in Umuna, a community in Orlu Local Government Area of Imo State, Nigeria's South-east.
Residents of the community said many people sustained injuries from the explosion while many businesses closed shops abruptly.
The police spokesperson in Imo State, Henry Okoye, confirmed the development to reporters on Wednesday.
Mr Okoye, an assistant superintendent of police, said that some hoodlums detonated improvised explosive devices (EIDs) at the market.
The police spokesperson said the two people killed in the explosion were among the hoodlums who detonated the IEDs.
He said the Commissioner of Police, Aboki Danjuma, has deployed anti-bomb operatives to the scene.
Mr Okoye asked residents to remain calm and report suspicious activities in the area to the police for action.
"We have deployed operatives to the area. No cause for alarm," he assured.
Worsening insecurity
No group claimed responsibility for the latest attack.
However, the Indigenous People of Biafra (IPOB) has been blamed for some deadly attacks in the South-east which has been plagued by insecurity for some years now.
Security agencies and government facilities are often targeted in the attacks in the region.
But the separatist group has repeatedly denied any involvement in the attacks.
IPOB is leading the agitation for an independent state of Biafra which it wants carved out from the south-east and some parts of south-south Nigeria.