The explosion struck at around 1.30 p.m. in the town, which is the heartland of the Islamist militant group.
"So far, 52 people are injured, 47 dead persons have been removed from the market," A member of the civilian JTF, told reporters.
A military source who declined to be named said around 50 people had been killed.
Boko Haram has killed thousands of people during a six-year armed campaign to set up an Islamic state in northeastern Nigeria.
The spate of attacks in the North eastern part of Nigeria has increased and an estimated 700 people have been killed in raids and bombings by the insurgents since President Muhammadu Buhari took office on May 29, promising to crush the insurgent group in his inaugural speech.
At the start of the year Boko Haram controlled a large chunk of the North-East, but in the build up to the general elections the Nigerian military in conjunction with the multinational forces pushed the dreaded group which has since pledged allegiance to Islamic States from most of the States into Sambisa forest.
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