Various reports put the death toll at between 24 and 37, with more than 60 wounded.
A statement on a website linked to ISIL says the attack targeted a gathering of Shi’ite Muslims.
In Iraq, Hollande hopes for 'year of victory against terrorism' https://t.co/V5yJm3sJds
— Reuters Top News (@Reuters) 2 gennaio 2017
The blast comes as the French President Francois Hollande visits the Iraqi capital and it is the latest in a series of bombings.
On Sunday nine people, including four security personnel, were killed at a checkpoint south of Baghdad.
And on Saturday two suicide bombers killed at least 28 people in a market in Baghdad. ISIL said it was also responsible for that attack.