UPDATED 1.58pm: A group of expats, including a New Zealander, have been kidnapped in southern Nigeria by gunmen who killed their local driver.

Australian PM Malcolm Turnbull has confirmed the kidnapping of seven people, including one New Zealander and four Australians.

Those kidnapped are employed by Perth-based company Macmahon Holdings.

The group were attacked on the outskirts of Calabar in the early morning (about 4.30pm yesterday, NZT).

Two Nigerian workers were also kidnapped.

The Nigerian Government said it is throwing everything it can behind the operation to secure the release of the kidnapped victims.

Nigerian Government spokesman Christian Ita said security services, the police and army were doing everything possible to ensure the release of the New Zealander and everyone else affected in the incident.

They knew where the group was being held.

Mr Ita said from every account a militant group was responsible but said to his knowledge they hadn’t asked for money.

The Nigerian Government wanted to bring closure as soon as possible and was hopeful the hostages would be released anytime from now.

The New Zealand Ministry of Foreign Affairs and Trade said officials were in contact with the hostage’s family.

A spokesman said the ministry continued to seek more information on the situation and was also in contact with Australian authorities as well as the mining company.

Given the sensitive nature of the situation the Ministry would not be commenting further.

A spokesman for Foreign Affairs minister Murray McCully said the minister was receiving updates on the situation as it unfolded.

A source told the publication the men were being driven to their workplace in four vehicles and escorted by security - when they were attacked.

One driver was killed in the attack.

A police spokeswoman for Cross River state Police told the publication two of the men had since managed to escape - but she did not know the nationality of those workers.

The kidnappers are yet to make contact with police.

A witness told The Punch he was returning from his farm yesterday when he saw the incident occur just before the Idundu Bridge, in the eastern part of of the city of Calabar.

"These kidnappers came out from the bridge, shot the driver of the vehicle and took the victims away through the river.

"The vehicles conveying the expatriates and the two Nigerians were abandoned by the road-side with the dead body of the driver. From all indications, the expatriates were going to work at the Lafarge Holcim plant in Mfamosing.''

MFAT response

An MFAT spokesman said there were currently 25 New Zealanders in Nigeria registered with the government.

The MFAT puts Nigeria at extreme and high risk due to the threat from terrorism, kidnapping and violent crime.

It advises against all travel in the north and against all tourist and other non-essential travel throughout the rest of the country.

It says there is a high threat of kidnapping throughout Nigeria, but particularly in northern Nigeria, where most of the recent kidnappings had occurred.

Expatriate workers at oil and gas facilities were at particular risk of kidnapping as the crimes were often financially motivated. 

New Zealanders working in the northern states against Government advice were advised to seek professional security advice and ensure appropriate personal security measures were in place at all times.

The MFAT website said as there was no New Zealand diplomatic presence in Nigeria, the ability for the government to provide assistance to citizens was severely limited, particularly in regions where travel was advised against. 

Another high profile kidnapping involving a New Zealander was that of Mary Quin; who in 1998 was among a tour group that was taken hostage by armed and masked militants in Yemen.

Dr Quin - now a member of the board of Westpac NZ - was one of 16 tourists taken hostage by the group, who used them as shields in a gun battle between the Aden-Abyan Islamic Army and Yemeni troops.

Dr Quin, who was born in Palmerston North, managed to flee after she ripped an AK-47 from a kidnapper before making her escape.

She later wrote a book about her experience: Kidnapped in Yemen.