The incident occurred at a busy location where tricycles pick passengers, and may have killed dozens and injured even many more.
The thunderous blast, which sounded at about 6:30am, resonated all over Maiduguri, residents say.
Witnesses later said the explosion occurred near the entrance of Gamboru Market where operatives of commercial tricycles park to pick passengers.
“We heard the blast at about 6:30am this morning and shortly afterwards, we saw people running from the direction of the market screaming that it was a bomb,’ said Maryam Abu, a civil servant whose residence is close to the area.
No one has so far claimed responsibility for the bombing. But security operatives believe it has the imprint of the extremist Boko Haram sect.