Suspected Boko Haram terrorists attacked Gajiram, the headquarters of Nganzai Local Government of Borno State, on Friday.
Some witnesses who fled the area told Channels Television that the assailants came in four vehicles but they were intercepted by federal troops, who engaged them in a gun battle.
Gajiram is located in the northern axis of Borno, where insurgents have recently intensified attacks.
Troops of the Operation Lafiya Dole in the area are, however, said to be standing their ground and offensively engaging the assailants.
The battle has caused many residents to flee into the bush while others are still trying to make their way to safer grounds at the time of this report.
There are, however, no details of any casualties as the army has yet to issue an official statement.