The 30-year-old man, Ahmad Usman, was in a local vigilante group and police say about 200 people were mobilised against him.
There are no details yet about the row.
Last month, a Christian female student was beaten to death and set on fire by Muslim students who accused her of blasphemy in the city of Sokoto.
The Abuja victim was described by police as "a member of the local vigilante around Tipper garage at Federal Housing Estate in Lugbe Area".
Police found him at the scene with severe burns and took him to hospital, but he died of his injuries.
BBC Abuja reporter Chris Ewokor says there appears to be a rise in mob violence in Nigeria.
Two weeks ago, at least five people were killed in violent clashes between commercial motorbike operators and traders in a suburb of Abuja.
A few days earlier, mob violence led to the death of a 38-year-old sound engineer in the country's commercial hub, Lagos.
Human rights campaigners say the frequent cases of mob violence are fuelled by deep-rooted impunity and a lack of confidence in the criminal justice system.