Some armed men suspected to be members of the Boko Haram sect have sacked Gudumbali town, the Local Government Headquarters of Guzamala Local Government Area of Borno State.
According to Channels Television on Saturday, residents said the attackers looted food items and carted away with about five gun trucks.
However, the Nigerian Army authorities have yet to issue any statement about the attack.
Many are feared dead in the attack which occurred on Friday evening while food items were being distributed to the civilian population.
Some soldiers were reportedly dislodged by the assailants and are said to be taking refuge in a nearby military location at Damasak.
The troops are, however, on a red alert for the rampaging insurgents in the area.
Gudumbali is home to nearly 3,000 persons relocated by the Theatre Command Operation Lafiya Dole and the Borno State government in June this year after four years of displacement in the heat of the insurgency.
But the town came under a fresh severe attack in September, during which it was sacked.
This prompted the Chief of Defence Staff, General Abayomi Olonisakin, and other service chiefs to converge on Maiduguri, the Borno State capital to strategise new measures to be deployed in the war against terrorism.
The activities of the armed group have increased recently around the lake region in the northern part of the state.