The village head and 11 others were shot dead in the attack on Garubula village in Biu area of Borno, Usman Bunu, a resident who witnessed the onslaught, told Xinhua.
He said Boko Haram stormed the village late on Wednesday, shooting sporadically and warning residents not to flee.
He added that a local security guard at the village head's palace was among the casualties.
A security official, who preferred anonymity, said the village head was rushed to a nearby hospital where he later died.
No arrest has been made so far, as the insurgents might have fled to a nearby forest, according to a security source.