The Boko Haram militants attacked the town of Ngamdu in Borno State early on Tuesday, killing about a dozen people.
Ngamdu town which has been hit several times by the Boko Haram sect, lies on the border of Borno and Yobe States north-east Nigeria.
The town is about 100 km (60 miles) east of Borno State capital, Maiduguri and about 40 km west from Yobe State capital Damaturu, and lies near a road that is a major transport artery between the two States.
The casualties and wounded were mainly bus and truck drivers. Around six drivers died, a security source said.
A commercial driver, Mamman Abdullahi, said the insurgents came to Ngamdu at about 9:30 A.M. but were pursued by soldiers.
“They came back later on horse, shooting at people. Many were killed and some of our drivers were injured,” he said.
“Three drivers and some passengers were hit by bullets and being treated in a Maiduguri hospital.”
According to Reuters, five people were being treated for serious injuries after the attack at Maiduguri’s Umaru Shehu Hospital but more were being treated for wounds in other locations.
Vehicles on the road to Yobe were told to turn back due to the raid.
This is the second time in a week that the group have hit towns along the road.
Two suicide bombers blew themselves up at a checkpoint at Beneshiek on Saturday.
The country had recaptured several key towns in the last few weeks and Boko Haram has been largely pushed out of Adamawa and Yobe states with help from Chad and Niger.
On Monday, Chadian and Nigerian troops freed the towns of Malam Fatouri and Damasak from militant control.