The military and the Boko Haram militants exchanged fire in Kafiya forest last week, the army said, dismissing earlier reports which had claimed that 40 soldiers had been killed while 65 others were missing.
Military spokesman Brigadier-General Ibrahim Attahiru said key commander of the insurgents Abba Goroma was also killed during the raid. He described him as a high value target.
"On September 12, 2013, troops of the 81 Battalion, under the 7 Division of the Nigerian Army, carried out a deliberate attack by assaulting the enemy camp, the insurgents' camp, at Kafiya Forest," he said.
He said the terrorist camp was well fortified with anti-aircraft and anti-tank weapons mounted on vehicles.
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"At the end of the fire-fight, over 150 insurgents were killed and the enemy or insurgent camps cleared. We lost an officer and 15 soldiers in action, while nine soldiers are missing," Attahiru said.
Boko Haram wants to install an Islamic emirate in northern Nigeria and impose sharia law.
The oil-rich country's President Goodkuck had declared a state of emergency in three states where the militants are very active.
Nigeria has 36 states and the country's population is more than 150 million.