Gunmen have kidnapped seven people in the outskirts of Calabar, the Cross River state capital, including three Australian citizens and one from New Zealand.

The hostages, two of whom police say later escaped, are contractors for Lafarge Africa, a cement company.

Viola Graham-Douglas, a spokeswoman for Lafarge Africa, said the company has been informed of the development and is working with security agents to ensure the safe return of all the men involved.

Meanwhile Australian Prime Minister Malcom Turnbull, has condemned the incident, describing it as a “very serious kidnapping”.

The New Zealand Prime Minister, John Key, on Thursday during a press conference in Wellington, said there was no chance of the government paying a ransom for the release of New Zealander being held hostage in Nigeria.

Key said the compromise would only put a bounty on the head of any New Zealander working in a volatile region thereby making the situation worse.