Suspected fighters of the Islamic State West Africa Province (ISWAP) launched an attack on a Nigerian military camp in Pulka, Borno State, late Saturday night.
Residents said the assault lasted about one and a half hours, with intense gunfire echoing across the town.
Local sources reported that the facility was set on fire during the attack, causing significant damage.
Although casualties are feared among military personnel, authorities have not released any official figures.
Security operatives were said to have responded, but details of any counter-operation remain unclear as of press time.
The incident comes barely 24 hours after suspected Boko Haram/ISWAP fighters abducted five civilians at Doro Baga in Kukawa Local Government Area of the state.
The victims were reportedly seized around 7 a.m. on Friday while buying fish at a local market.
They were identified as Alhaji Sani Boyi, Bullama Dan Umaru, Baba Inusa, Abubakar Jan Boris and Mallam Shaibu.
Security sources said troops of Operation HADIN KAI, supported by members of the Civilian Joint Task Force and local hunters, responded after receiving distress calls.
Intelligence was also said to have been deployed to track the attackers and locate the abducted residents.
Communities around the Lake Chad region have continued to face recurring attacks and abductions despite ongoing military operations in the North-East.