The gunmen disguised as security personnel attacked the men around 3:00 am (local time) while they were sleeping at a farm in the village of Sabon Gari in the Gombi district. The victims were shot at close range with their hands tied behind their backs.
"The gunmen killed seven of the eight men who went to work on my farm. Only one escaped," said farmer owner Yakubu Sarkin-Baka, also head of the local hunters' union.
"They were found with their hands tied behind their back and bullet holes in their heads," Sarkin-Baka said.
"The only survivor told us they mistook the attackers for security men."
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Sarkin-Baka declined to say who was behind the attack but an uncle of one of the victims put the blame on Boko Haram jihadists.
"It is clearly the work of Boko Haram on a revenge mission," Usman Zakari said. "No one would shoot dead seven people in such a cruel manner except Boko Haram."
In November 2014 Boko Haram fighters briefly seized Gombi but were repelled by the military with the aid of local hunters from the town.
The Islamists made a failed attempt to retake the town two months later but were pushed back by troops and hunters who launched an extensive manhunt and forced Boko Haram to pull out of the area.
On Tuesday at least 50 worshippers were killed when a teenage suicide bomber blew himself up inside a mosque during morning prayers in the town of Mubi, 59 kilometres away.
Boko Haram was also suspected in that attack. The Islamist militants have been waging an insurgency in northern Nigeria since 2009 which has left at least 20,000 people dead and more than 2.6 million others homeless.