Environmental agency workers pulled out the bodies of the villagers after the militants in the deadly attack on Tuesday on Maiduguri/Damaturu highway massacred many innocent people.
Also found among the dead in Benisheik village were two soldiers and three policemen.
The insurgents initially came in 20 pickup trucks and two light tanks to confront the military, a soldier said.
They fired anti-aircraft guns and rocket propelled grenades to overpower the soldiers, he said.
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The insurgents later retreated to the village and killed the villagers.
Nigeria has been battling to contain an onslaught by the extremist Islamic sect Boko Haram since 2009.
The group has vowed to install an Islamic government in the country.