The bomb went off on the outskirts of the village of Gamboru Ngala, where more than 200 people were killed and 11 girls kidnapped by Boko Haram this week.
"I believe some people are still trapped in some debris," resident Gamboru Ngala told the newspaper.
Meanwhile, the hunt for more than 200 schools girls abducted more than three weeks ago by Boko Haram in northern Nigeria continues.
The teenage girls were abducted on April 14 from a boarding school in the town of Chibok, near Borno state capital Maiduguri, DPA reported.
Boko Haram leader Abubakar Shekau threatened to sell and enslave the girls. It was unclear how many were still in captivity, some having escaped.
Nigerian police offered a reward of 50 million naira (310.000 dollars) to anyone providing a lead on the whereabouts of the abducted children.