Insurgents hit Gamborun Ngala, a community in Nigeria's Borno state which shares border with Cameroon, and opened fire on the residents, Xinhua reported citing a military source.
The source said Boko Haram fighters stormed the community in the early hours on Monday, shooting sporadically.
A survivor, Abdulfatah Ibrahim, said many of the residents fled to a neighbouring community for refuge in Cameroon, as the attackers threw explosives into their houses.
"I was in the mosque when the shooting started. We fled to the bush for safety. More than 70 people fled to Cameroon," he said. Analysts said, with the latest attack, Boko Haram has annexed another town in the northeastern state.
Local media on Sunday reported that Boko Haram was increasingly expanding its control in the country's northeast region, after taking over Gwoza, another border town.
Hundreds of residents were killed three months ago in previous attacks in Gamboru.
Boko Haram, a sect which seeks to enshrine Islamic Sharia law in Nigeria.