The reinforcement followed a late evening attack on a military base on Wednesday that lasted about 12 hours leaving three soldiers dead.
Residents of the town were thrown into panic all through the night while the attack lasted.
The bandits are believed to have made their way to town through Damasak area after overpowering men at the military checkpoint in Geidam.
Weapons were destroyed during the attack of the military base while a second group proceeded to town looting food items in the market and setting shops ablaze.
The Chief of Army staff, Lieutenant-General Tukur Buratai, was not impressed with the performance of the dislodged troops.
He did not mince words when he read the riot act to officers and men insisting that they all live up to expectation.
Two Armoured Personnel Carriers and vehicles belonging to the federal troops were among items destroyed by the assailants.
The Chief of Army Staff, however, gave the assurance that the Army would not relent in its efforts to disband the rebel group.
The number of civilian casualties is yet to be verified but at least three persons are feared dead.