Boko Haram insurgents reportedly invaded Tarmuwa, the headquarters of Babangida local government area of Yobe State on Sunday.
Babangida is about 50km North-East of Damaturu, the state capital.
The insurgents armed with anti-aircraft trucks and grenades stormed the town on Sunday evening and fired sporadically at security formations and communities.
The development forced residents to scamper for safety.
The insurgents also engaged troops of Operation Hadin Kai in a fierce gun duel.
However, the number of casualties in the attack remains unknown as at press time.