Nigeria said on Tuesday it will "plug loopholes" in its airline industry and ensure compliance with maintenance standards after an air crash on Saturday that killed 117 people.

President Olusegun Obasanjo said he had already ordered a "full and fair investigation" into the crash of the Boeing 737 shortly after take-off from Lagos on Saturday night.

"In addition, I have directed the aviation ministry to ensure strict compliance with maintenance and operational requirements and standards for all aircraft in order to plug loopholes and ensure passenger security and safety," Obasanjo said in a national television and radio address.

Bellview Airlines said the 24-year-old plane had been given a clean bill of health by safety inspectors in February. The Abuja-bound flight took off when there was a heavy electrical storm in the area around Lagos.

A presidency source said the plane sent a distress call shortly after take-off, indicating a technical fault, but this has yet to be confirmed by aviation authorities.

Nigeria's air industry has seen dramatic growth over the past 10 years, but most of the planes are at least 20 years old.

The industry is dominated by small Nigerian companies, but Britain's Virgin Group was recently chosen as operator of a new flag carrier airline, Virgin Nigeria, and has started flying domestic and international routes with newer planes.

Although an official casualty list has yet to be issued, the dead are believed to have included some prominent Nigerian officials and businessmen, a US military officer, two Britons and a German.

Two US forensic experts are expected to arrive in Nigeria to help identify the victims.

Obasanjo said Nigerians would hold a minute silence on Wednesday as a sign of respect for the dead, and Ogun state government would hold an interfaith service to remember the dead at the crash site on Thursday.