The bomb occurred on Sunday evening.
A military source said several bodies had been recovered from the site of the bombing.
“We don’t have a precise death toll for you while work is still going on to remove the corpses,” said police spokesman for Adamawa State, Usman Abubakar.
There was no immediate claim of responsibility.
Islamist militant group, Boko Haram, whose struggle for an Islamic state is concentrated in the northeast, would be the prime suspect.
The group has set off several bombs across north and central Nigeria in the past two months.
Last weekend, a suicide bomber set out to strike an open-air viewing of a football match in the central city of Jos, but his car blew up before reaching the target, killing three people.
A suicide bombing the week before in Jos killed over 100 people, and two bombs on the outskirts of Abuja in April killed 95 between them.
The group is still holding more than 200 schoolgirls that it abducted on April 14.
Nigeria’s president said on Thursday he had ordered “a full-scale operation” against Boko Haram and sought to reassure parents of the kidnapped girls that their children would be freed.
An Army chief last week said the military had identified where the girls were held, promising that they would be rescued.