At least 10 persons were killed when the terrorist group, Boko Haram, attacked Damasak, the headquarters of the Mobbar Local Government Area of Borno State, on Tuesday.
Mustapha Bako Kolo, Chairman of the local government, confirmed the casualty toll.
An unspecified number of Internally Displaced Persons (IDPs) were also injured during the attack, according to Kolo.
The terror group stormed the area in over a dozen gun trucks and could be seen heading towards the Army base in Damasak, as residents were forced to flee for safety, Channels Television reported sources as saying.
Fighters of Boko Haram/Islamic State West Africa Province met stiff resistance from the Nigerian Army, who was supported by the Airforce.
The attack on Damasak is the second within the week.
The insurgents had shared a video of their weekend attack on Damasak town during which they burnt UN buildings and food storehouses.
The latest attack prompted residents to flee towards the border.
“The locals are currently relocating to Niger Republic due to state of insecurity in the town,” said the military officer, who asked not to be identified, told the AFP.
On Wednesday, residents who remained left the town across the border when militants in several trucks fitted with machine guns engaged troops in a fight outside the military base in an attempt to overrun it.
“This is the situation we found ourselves again, as you can see now we are going to take refuge in another country that is not even our own,” a resident said in a video clip sent to AFP by sources.
In the recording, hundreds of residents are seen on foot and on donkeys moving along a winding bush path with personal effects.