Gunmen suspected to be Islamic State of West Africa Province (ISWAP) fighters are currently in a gun duel with a military formation in the southern part of Borno state.
The deadly terrorist group invaded the remote town of Damboa at about 10:30 am, with dozens of gun trucks, according to Daily Trust.
The incident threw the town into confusion as residents and displaced persons ran for their lives.
According to the newspaper, there was air bombardment deployed to assist the ground troops and local volunteers.
“I can confirm to you that these boys (ISWAP) are currently attacking state forces in Damboa town. Airpower has been activated to support the troops. Everything is under control,” the security source said.
Damboa is 100 kilometres away from Maiduguri, the epicentre of insurgency.
ISWAP recently took control of the Abubakar Shekau-led Boko Haram, leading to his death.