Our correspondent gathered that controversy started over the failure to agree on which group should collect security fee at a make-shift market located at Ekwe, Ikom, National Streets within Mile three Diobu, Port Harcourt.
A leader of one of the cult gangs was shot dead during the confrontation before security operatives intervened.
It was also gathered by our correspondent that some passersby and traders selling at the illegal market where the incident occurred were arrested by the Police.
Spokesman of the Rivers state Police command, Nnamdi Omoni has also confirmed the incident.
In the meantime, there are fears in the area over a possible reprisal attack.