The Islamic State West Africa Province (ISWAP) recorded losses Tuesday evening in Dikwa town, Borno State.
The Nigerian military troops deployed to the area repelled the sect members after a fierce battle.
Scores of terrorists stormed the town in a convoy of gun trucks and motorcycles while shooting sporadically.
Officers and men of the Nigerian Army and Air Task Force foiled the plan in a coordinated response.
“The terrorists were pounded severely. Those who survive the troops’ onslaught fled, abandoning their evil mission,” a security source said.
The military has hailed the troops for putting up a good fight against the insurgents and safeguarding civilians.