It was noted that two explosions occurred in the market in Magadali city.
Around 60 people were injured.
None of the groups claimed responsibility for the blast at the moment.
The government then said that "Boko Haram" is suspect in the attack.
Madagali was under control of this group for several months, but last year the Nigerian military were able to seize control of the city.
Boko Haram has frequently targeted crowded areas such as markets, places of worship and refugee camps. The jihadist group has killed around 15,000 people and forced more than two million people to flee their homes.