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Marte town has been overrun by suspected members of the Boko Haram sect and Islamic State West Africa Province.
The incident happened at about 5.30pm on Friday and the armed men were still holding the town as of Saturday, forcing security agents and civilians to flee.
The town is located on the fringes of Lake Chad Basin, an area occupied by the insurgents.
According to a military source, 90 per cent of the over 300 households that returned to the town in December 2020 have been displaced by the attack.
“90 per cent of the IDPs who returned in December have fled the town as a result of the recent attack. They have fled to nearby Dikwa and Maiduguri. As we speak, the insurgents are holding the place,” the military source said.