The Islamic State in statement have claimed its fighters killed 40 Nigerian soldiers and injured others in an ambush along Damboa/Maiduguri Highway, about 30 kilometres away from Damboa town.
ISIS in the statement seen by SaharaReporters said ISWAP fighters captured five four-wheel drive vehicles, weapons and ammunition, and burned an armoured vehicle during the attack.
The group mentioned Bulabulin as the exact location where the attack occurred.
The Nigerian military had on Wednesday confirmed the attack but said only two soldiers were killed.
John Enenche, Coordinator of Defence Media Operations, said the troops in conjunction with elements of sector 2 special forces overran the insurgents’ ambush team.
Boko Haram split into two factions in mid-2016.
One led by long-time leader, Abubakar Shekau, is notorious for suicide bombings and indiscriminate killings of civilians.
Shekau pledged allegiance to ISIS leader, Abu Bakr Al-Baghdadi, in March 2015 but ISIS central only gives formal backing to the other faction, which it calls Islamic State West Africa Province.