Boko Haram insurgents on Wednesday morning attacked Damboa in Borno State in a bid to abduct some residents.
POLITICS NIGERIA learned that the terrorists set some buildings on fire, including Damboa General Hospital.
Subsequently, troops of Operation Hadin Kai engaged the them in a heavy gun battle. It is not yet clear if there are casualties on either or both sides.
Since the death of Boko Haram leader, Abubakar Shekau, last year, the terrorists have been trying to dominate locations around Lake Chad.
The Nigerian Army has repeatedly claimed that insurgency had been largely defeated and frequently underplays any losses.
The terror group has caused over 50,000 deaths and displaced millions of people mainly in Adamawa, Borno and Yobe states.