Pandemonium struck in the early hours of Saturday as residents of 1000 Housing Estate in Maiduguri, Borno State capital, woke up to an explosion.
The explosion is believed to have been launched by Boko Haram fighters in the area.
Reports say no life was lost in the incident, a military source said the insurgents engaged troops in a gun battle.
Nugerian troops of 33 artillery, Njimtelo shot at insurgents sighted on the outskirts of the state capital.
The incident happened after at least 20 persons, including two soldiers lost their lives around 1:30am on Friday at Rann, which shares borders with Cameroon.
Suspected ISWAP insurgents and troops clashed at a military base in Rann, headquarters of Kala Balge Local Government Area of Borno.
Troops neautralised many of the outlawed group and destroyed their operations vehicles.
There was also an attack at Malam Fatori, headquarters of Abadam Local Government Area of Borno.
The town shares a border with Niger Republic and had been hit by Boko Haram fighters on countless occasions.