Three persons, according to the police, were injured during the Monday morning fight at Kwame Nkrumah Circle.
The fight follows the closure of shops belonging to some Nigerian traders.
Earlier report suggested that the aggrieved Nigerian traders attacked their Ghanaian counterparts with guns and cutlasses.
ACP Abraham Acquaye, the Nima Police Divisional Commander, confirmed the arrest and injuries to DGN Online.
There has been tension between Ghanaian and Nigerian traders in recent time.
Shops belonging to Nigerian traders in Kumasi were shut down this year allegedly by the Ghana Union of Traders Association (GUTA).
Ghanaian traders feel foreigners, particularly Nigerians, Chinese and Lebanese have taken over their retail business.
Vice President of All Chairmen Association, a Ghanaian Traders’ group, Kojo Dankwa, told journalists at Circle, that Nigerians have succeeded in taking over business from Ghanaians through unfair trade practices.
He said Nigerian traders in Ghana were recruiting their relatives from Nigeria and placing them at vantage points to gain hold of the market over their Ghanaian counterparts.
DGN