It was also confirmed that the explosion went off in a pick-up van loaded with explosive devices covered with charcoal in the busy area.
Two of the bombers according to witnesses were killed instantly.
No group has claimed responsibility for the bomb. but a terrorist group has carried series of similar attack in the northeast state.
The very busy Ahmadu Bello Way leads to the Monday market with several shops and lots of commercial activities along the highway with adjourning shops.
Residents said the market was normally open for business around 9:00am local time daily, but that casualty figure may be high as the busy highway connects several roads to the heart of the town as passers-by were plying the road when the explosion went off.
Hospital sources confirmed to Channels Television that more than 10 bodies had been brought to the morgue of the hospital with over 20 people injured.
The source also said the figure may increase as the rescue team is still working at the scene of the blast.
The popular Monday market is an international market serving neighbouring Niger, Chad, Cameroon and Sudan as well as Central African Republic.
Medical doctors in Nigeria embarked on a nation-wide strike on Tuesday, a development that could lead to more casualties in the incident.
The Nigerian Medical Association, NMA, on Monday advised its members to stay away from work with effect from July 1, 2014.
Addressing a news conference in Abuja, the President of the association, Dr Kayode Obembe, said that the Federal Government had failed to address the demands of the association, forcing them to take the action in order to save the health care delivery system from anarchy that is imminent in the health sector.
– Channels TV.