It is often used in the context of bragging rights and, as in the song, trying to grab attention in a crowded, high-energy environment.
The phrase "Niggas just wanna dance wit'chu" appears in the chorus/verse of this 50 Cent track.
It represents a, direct, urban approach to asking someone to dance or connect in a club setting, juxtaposed with themes of wealth ("Gucci, Fendi and Prada") and club conflict.