Fighters from Daesh West Africa Province drove into remote Felo village in Gubio district in the early afternoon, shooting fleeing residents and running them over with their vehicles.
Boko Haram and its Daesh-affiliated Islamic State West Africa Province (ISWAP) faction have recently stepped up attacks on military and civilian targets.
Mercy Corps says it's suspending operations in Borno and Yobe states after Nigerian military shut four of its field offices. Separately, Daesh-linked militants executed one of six captive aid workers of Action Against Hunger.
Locals say militants targeted a funeral on Saturday in northeastern Borno state, epicentre of Boko Haram and Daesh insurgency.
More than 40 people were also wounded when three unidentified bombers struck in the northeast state of Borno where villagers were watching a football match on TV, officials and villagers say.
Many Nigerian women who were once married to Boko Haram fighters are navigating their trauma, though by not denying their experiences. They also want to raise their children in anonymity, hoping their true identity is never revealed.
The attack was carried out in Kareto village, 335 kilometres north of the Borno state capital Maiduguri, military officials say.
Daesh has claimed responsibility for the attack on the convoy of the Nigerian governor of northeastern Borno state that killed at least three people.
Military sources said the attack targeted the Forward Operation Base in Ngwom village, some 14 km north of the Borno state capital, Maiduguri.
UN refugee agency spokesman Babar Baloch says panicked civilians left the town of Rann over the weekend and crossed into neighbouring Cameroon amid fears of renewed attacks by militants.
Defence ministry says more than 200 militants were killed in air strikes and a further 87 by ground troops since a military offensive began on December 28.
A humanitarian group in Nigeria says it has recorded 10,000 cases of cholera in the country's north.
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