The gunmen reportedly rounded up a group of men in Izghe village and shot them, before going door-to-door and killing anyone they found.
Officials said they suspected the Boko Haram group was behind the attack.
Boko Haram, which claims to be fighting to create an Islamic state in northern Nigeria, is notorious for extreme violence and indiscriminate attacks.
Bodies in the streets
The senator for Borno state, where the attack took place, has told the BBC that 106 people were killed in the latest attack.
Ali Ndume said around 100 Islamist militants attacked Izghe for five hours on Saturday evening, without any intervention from the army.
He said the military recently withdrew from the area after nine soldiers were killed in an ambush last week
Residents who fled the attack in Izghe said some of the victims were shot, while others had their throats slit.
"All the dead bodies of the victims are still lying in the streets," resident Abubakar Usman told Reuters news agency.
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