Soldiers and members of the Boko Haram sect are currently engaged in a gun battle at a military location in Damasak, Borno state.
The insurgents reportedly launched an attack on a military base in the area around 5pm on Wednesday.
A military source said the insurgents stormed the town with anti-air craft guns, bombs and other weapons.
Texas Chukwu, army spokesman, has confirmed the attack, saying soldiers are on top of the situation.
The incident comes less than a week after Boko Haram fighters struck at a military location in Gudumbali, Guzamala local government area.
Some witnesses said soldiers were killed in the attack but the army denied losing anyone.
In its renewed campaign of violence, the insurgents have been carrying out attacks on military locations in the north-east.
Commenting on this Ahmad Salkida, a journalist known to have access to the leadership of the sect, said Boko Haram had been overrunning military formations and piling up arms for something “big”.
“The insurgents are busy piling up arms, by overrunning one military base, after another, for something “big” and what could that be?” he had tweeted last week.
Salkida added that in the history of insurgency in Nigeria, no year has been as bad as 2018 in terms of the killing of military personnel by Boko Haram fighters.
The government has consistently claimed victory in the war against insurgency but the action of the sect has left many worried.