The insurgents were said to have arrived the villages around 8:00 pm on Saturday in gun trucks and motorcycles while shooting sporadically to scare off villagers.
According to eye witnesses, locals scampered into nearby bushes for safety as the insurgents raided shops and homes carting food before setting them ablaze.
The Acting General Officer Commanding (GOC), 7 Division, Brigadier General Bulama Biu, confirmed the incident, saying troops have been sent to the area and calm has now been restored.
The GOC has also stated that a similar attack on farmers also occurred on Saturday morning in Kwayangeya, a village near Damboa local government.
He said troops are intensifying patrol in the Damboa general area to fish out the criminals and allay the fears of residents.