Witnesses said the attack occurred at Koronginim Village, near the town of Chibok, where more than 200 schoolgirls were kidnapped in April.
A security source said insurgents in military uniforms stormed the village and wreaked havoc on residents, shooting indiscriminately. "So far about a dozen dead bodies had been found, " said the security source who asked not to be identified.
Simeon Buba, a resident who lives close to Chibok, said the attackers chased some of the fleeing villagers into the surrounding bushes, injuring more than 10 people in the attack. The insurgents set fire to houses, shops and vehicles in the four- hour attack before heading for Ntsiha Village in the vicinity.
"Over there (at Ntsiha Village), they also killed people and burnt their houses," said Buba.
No group has claimed responsibility for the latest attack, but local residents and witnesses blamed it on Boko Haram, which has proved to be a major security threat in Nigeria since 2009.
Boko Haram seeks to enshrine the Islamic Sharia law in the constitution of Nigeria, Africas most populous country. The group has claimed responsibility for the abduction of more than 200 school girls and has been condemned vehemently for it locally and internationally.