The early morning attack targeted the village of Kuka in Plateau state, which roughly falls on the dividing line between Nigeria's mainly Christian south and predominately Muslim north.
"Five people were killed and many houses were burnt," said Plateau's police spokeswoman Felicia Anslem. "About 300 attackers invaded the community early today," she added.
The decade-long mostly sectarian conflict in Plateau has left thousands dead.
Herdsmen from the Fulani-Hausa ethnic group, which is mostly Muslim, have been blamed for scores of attacks on the primarily Christian Berom community.
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Fulani leaders have for years claimed that the violence can only be tempered if state leaders, who are almost entirely Berom, agree to major political reforms.
It was not clear who carried out the latest attack. While Kuka is a mostly Christian village, some of the victims were said to have been Fulanis.
Resident Abdullahi Ragmin said "200 houses" were burnt, and described the victims as ranging from age 35 to 60, in an account confirmed by other witnesses.
The ongoing peace process in Plateau has mostly failed to stop the violence, with deep mistrust persisting between the state's politicians and the security forces.
Berom leaders have accused the military of supporting and at times cooperating with the Fulani, but such allegations have not been definitely proved.
Plateau has also been targeted by the Islamist group Boko Haram, which is waging a four-year insurgency in the north, but most of the unrest has stemmed from local sectarian divisions.