The killings happened on Monday in the Bassa area of Plateau state, just a few days after at least five people were killed in the area.
"The people were returning to Zirechi (village) from Dundun when they were attacked by gunmen believed to be Fulani herdsmen," state police commissioner Undie Adie told AFP.
"I can confirm that 25 villagers were killed while two were injured. A number of houses were also burnt down by the attackers," he said.
No arrests have yet been made, he said, adding: "The terrain is mountainous. The assailants had fled before police could (get) there.
"We have launched a man-hunt for the killers with a view to bringing them to justice."
He added: "We appeal for calm and for the people to sheathe their swords. The violence is not new. It has been a lingering dispute between the local people and Fulani herders.
"We are making efforts to resolve the problem."