The fire, which began on Sunday night, was still burning despite the presence of fire fighters on Monday evening.
The company, which produces paper cartons used in packaging finished products, is said to be a subsidiary of SUMAL Foods and Confectionaries, also located in Oluyole Industrial Estate in Ibadan.
The affected company is located inside the vast premises of Sanusi Steel Industry, which, until it folded up, was producing steel and wire.
Offices, machines, warehouses, buildings, computers and raw materials had been destroyed already by the fire, with walls of most of the buildings showing cracks. The city of Ibadan has also been covered in ashes emanating from the fire.
As of Monday evening, smoke had rented the air as far as the University of Ibadan and Ojoo area on Oyo road.
A security guard, Edward Bassey, who works in one of the companies in the area, said the fire began around 10pm on Sunday.
The Director of Oyo State Fire Services, Kareem Oyekunle, however, said effort was still on to stop the spread of the inferno. He said 40 of his men were already working at the scene.