The Islamist militants had taken control of Gudumbali city in the Borno State.
Boko Haram insurgents attacked the community, set some buildings ablaze and forced the military into retreat.
An unspecified number of soldiers were reportedly killed during the militants’ surge.
Brigadier General Texas Chukwu, Director of the Nigerian Army Public Relations, said troops had regrouped and normalcy had been restored.
“The troops have also been reinforced with additional troops to dominate the general area,” the military spokesman said.
Gudumbali is one of the communities in Borno that were recently reoccupied by refuges who had voluntarily returned to their ancestral homes.
Chukwu urged locals to remain calm and resilient as military operations targeted the terrorists.
“Locals are also implored to maintain high level of vigilance and monitor strange faces to prevent fleeing Boko Haram terrorists from infiltrating and hibernating in their communities,” he said.
The Nigerian military is engaged in intense battle with the Boko Haram, an Islamist insurgent group plotting to overthrow the government.
An estimated 100 000 people have been killed and over 2 million displaced from their homes.
– CAJ News