The explosion, which took place on Wednesday evening, also left several residents injured.
The IED is believed to have been planted by Boko Haram insurgents, who have been causing unrest in the region.
A government official, speaking anonymously to Daily Trust, confirmed that the bomb exploded around 8:05 pm at a local tea joint where villagers had gathered for an evening chat.
The source indicated that the explosion caused significant casualties, with 19 confirmed dead and an unspecified number of injuries. The wounded have been taken to a hospital in Maiduguri for treatment.
The official noted that it appears the device was planted rather than being the result of a suicide attack.
This incident follows a recent spate of similar attacks, including one in which seven Nigerian soldiers were killed.
In June, at least six persons were killed and many others injured in a bomb attack at a wedding venue in Tashan Mararaba, Gwoza town, Borno State.
The incident comes on the eve of the planned nationwide protest, which the government has repeatedly said could be hijacked by hoodlums and terrorists.
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