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According to sources, a military base was targeted during the attack and an unspecified number of civilians may have been abducted.
The attack which occurred on Tuesday comes barely a week after the first set of villagers who have been displaced for many years were returned home to be resettled.
Kukawa, a border town on the fringes of Lake Chad has been a military zone, until the recent return of the Internally Displaced Persons (IDPs).
The controversial Baga town where Borno State Governor, Babagana Zulum was attacked is in Kukawa local government-barely 40 kilometers apart.
Zulum during that visit had personally inspected infrastructure and the security ambience before giving approval for the return of civilians.
Channels Television reports that sources say community leaders are currently conducting a head count in order to present an official report with the correct number of missing persons.
Two hundred households consisting of an estimated 1,200 persons were recently returned to the local council by the state government.
Details of the incident are still sketchy, and the military is yet to give an official position on the attack.
