Suspected members of the Boko Haram sect struck at Dalori internally displaced persons (IDP) camp in Maiduguri, capital of Borno state, on Thursday night.
A witness said that the attack took place around 9pm.
The witness said suicide bombers first struck before gunmen opened fire from different directions.
The source said the IDPs fled when the gunshots subsided and that security operatives have cordoned off the camp.
Most of the IDPs in the camp are from Bama local government area of the state.
The incident was said to have caused tension at the University of Maiduguri which is a few kilometers from the scene of the attack.
Many parents reportedly rushed to the school to pick their children while students also fled the institution.
Dalori camp had been attacked by insurgents in the past.
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