Nigerian security sources confirm that the attack by suspected militants on the security convoy killed policemen, soldiers, government-backed militia members and civilians.
They have seized those who had returned to the town in a government operation on August 2 after spending nearly two years in displacement camps.
The blast occurred at Kalam in the Lake Chad region, which has been battered by attacks from militants crossing from neighbouring Nigeria.
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.
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