Despite a video purporting to show the palace in flames, various eye witness accounts claim the fire had been put under control since mid-afternoon.
Earlier today, a video purporting to show parts of the Palace in flames circulated on social media, drawing mixed reactions from many, including those who made connections between the incident and the Oba's disregard of the Ooni of Ife at a public event a week ago.
Pulse visited the Oba's Palace on Lagos Island and found that activities in the palace and its surroundings had returned to normal.
According to eye witnesses who live and trade in its vicinity, the fire started in an inner area of the palace around midday on Tuesday.
While it took some time for members of the fire service to arrive at the scene, the flames were contained to the area of the palace where they broke out and were eventually put out by their trucks about three hours later, in the afternoon.
No lives were lost in the incident. The cause of the fire remains unknown.
Efforts to meet palace officials for more details were met with stiff resistance.