A local police official who spoke on condition he not be named because he wasn't authorized to talk to media said the victims were all shot when the large group of Boko Haram extremists stormed their village and fired at fleeing residents. The attack occurred in Ngamdu, a village 100 kilometers (60 miles) west of the Borno state capital Maiduguri.
Many other residents were wounded in the attack Friday, the official said.
Military units have moved into the region to fight the attackers, who have taken control of the only safe highway to Maiduguri.
Meanwhile officials in Maiduguri say an attempted bomb attack at the city's largest bus station failed when an explosives-ladden tuk-tuk was prevented from entering the site early Saturday.
The driver of the three-wheeled motorized rickshaw and four passengers then tried to attack a bus filled with passengers outside the station's entrance but the bus driver was able to quickly pull away before the tuk-tuk exploded, killing the driver and three of its occupants. A fifth passenger of the tuk-tuk escaped on foot but was chased down and arrested by a civilian security group.
Three bystanders sustained minor injuries from the blast.