The Force Public Relations Officer (FPRO), DCP Frank Mba, disclosed this at a media briefing in Abuja on Monday.
He said the amount was part of the ransom paid by one of their victims, Alhaji Tuku Zubairu, a wealthy business man in Sokoto State.
He said the gang was formed in Katsina Prison, adding that members were prisoners who had been prosecuted by the police.
Mba said they were either serving jail terms or rounding up their sentences while others were in the prison awaiting trials.
“Somehow, they were able to get themselves together while in the prison, formed a deadly gang and while in the prison they hatched the plot to kidnap one Alhaji Tuku Zubairu.
“As soon as they were out from the prison, they embarked on that mission, kidnapped the business man and collected ransom running into several millions from him.
“We went after them and as I speak to you today, all the gang members have been arrested and a total sum of N10.1 million, part of the ransom they collected has been recovered,” he said.
He said the police had also arrested another deadly kidnap gang known as the Shaibu DanKaduna, responsible for terrible crimes along Kaduna axis and some parts of the North Central zone of the country.
According to him, on Aug. 11 this gang ambushed a team of police operatives that were on a mission and killed four of the operatives.
“Ever since then, we have not relented on our efforts and as I speak to you, majority of members of that gang have been arrested.
“The riffles of the operatives that were snatched after killing them have all been recovered.
“The leader of that gang, Shaibu Dan Kaduna has been killed, he died during an exchange of bullet with police operatives on Oct. 3,” he said.
He said members of another kidnap gang responsible for the killing of Insp. Patrick Yohanna on Aug. 26 along Abuja-Kaduna road had also been arrested.
Mba said the entire gang members had been arrested, adding that another group, numbering 21 were also arrested in Taraba.
He said 10 internet fraudsters including a Secondary School Ghanaian were arrested in Abuja by police operatives.
“A look at them showed clearly that they are all young persons and out of the 10, one is a Ghanaian who told us that he is a secondary school student in Accra Academy.
“Some of the suspects are graduates and as a matter of fact, one of them who we recognise as the leader of the group is a graduate of Microbiology and a holder of Masters in Business Administration,” he added.
He said 8 AK 47 riffle, 344 rounds of AK 47 riffles and 15 other types of weapons of assorted make, largely locally fabricated were recovered.
Mba said 10 laptops recovered from the Internet fraud suspects would subjected to proper forensic examination before charging the suspects to court.