According to reports, Boko Haram gunmen on trucks and motorcycles stormed the town late on Monday.
A source with Nigeria's Joint Task Force told the Hausa Service of VOA that 24 soldiers and 21 police officers were confirmed dead following the attack.
The source, who spoke on condition of anonymity, said the gunmen took away an armored tank and many vehicles.
A Hausa Service reporter who in Nigeria's north-east also said militants were attacking motorists on highways leading in and out of Maiduguri, the Borno State capital.
Drivers said snipers wait in trees to fire at passing cars, which are then attacked by gunmen hiding in bushes by the side of the road.
The federal government has claimed it was winning the war against terrorism despite increasing attacks, which now seem to be spreading to the country's north central, with attacks on Jos, Plateau State last week.
The head of the Nigerian military, Chief of Defense Staff Air Marshal Alex Badeh, Monday said the military knew the location of the abducted Chibok schoolgirls.
Badeh said the military would not disclose further details, but assured the world that "we know what we are doing", and will bring the girls back safely.
Boko Haram insurgency, which started in 2009 has led to the death of thousands.
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