Rescuers found more bodies while combing the area for casualties Tuesday, Xinhua quoted a government official as saying.
Ali Kaka Yale, scribe of Konduga local government area of the restive northern state, said 16 people were still missing after rescue operators had counted up to 85 dead bodies which littered the area after the tragic incident.
The incident occurred when Kawuri district came under serious attack Sunday evening despite a state of emergency being in place for last one year.
More dead bodies might be found as search and rescue mission continued, Yale said, while receiving Governor Kashim Shettima, who went to sympathise with the community over the carnage.
Some 50 people who sustained injuries during the attack were assisted to local hospitals where they are being treated, he said.
Local residents said scores of gunmen, who wielded AK 47 rifles and shot indiscriminately, set hundreds of houses ablaze with improvised explosive devices (IEDs).
The unidentified gunmen fled into Sambisa Games Forest, which has recently served as a place of refuge for fleeing Boko Haram fighters.