The assault took place on Saturday at about 4:30 p.m. at Kasuwan Daji market in Demo village, according to police.
Police spokesperson Wasiu Abiodun said the attackers, locally referred to as bandits, stormed the market, set stalls on fire and looted food items.
"Over 30 victims lost their lives during the attack, and some persons were also kidnapped. Efforts are ongoing to rescue the kidnapped victims," Abiodun said.
Witnesses said the gunmen arrived on motorcycles and fired indiscriminately at civilians.
They said the violence was part of a wave of raids that began on Friday in nearby Agwarra and Borgu villages.
"Women and children were not spared," said Dauda Shakulle, who was wounded while trying to flee.
"There has been no presence of security forces since the attacks began. We are currently recovering corpses," he said.
Meanwhile, Nigerian President Bola Tinubu said on Sunday that he had ordered security agencies to pursue those responsible for the attack.
"I have also directed that all abducted victims be urgently rescued and that security operations around vulnerable communities, especially near forests, be intensified," Tinubu said in a statement.
Separately, the Nigerian military did not immediately respond to requests for comment.
The attack follows an incident weeks earlier in which gunmen abducted more than 300 children and staff from a Catholic school in central Nigeria’s Niger State.
Those captives were released after spending nearly a month in detention.
Such banditry has intensified across northwestern and central Nigeria, with armed groups carrying out mass killings and kidnappings in rural areas.
Security forces have struggled to curb the violence despite ongoing operations.
Witness Khalid Pissa said gunmen also attacked communities in Kasuwan Daji, as well as nearby Chukama and Shanga.
Pissa said the death toll from the attacks stood at 40.