According to eyewitnesses, three female suicide bombers were responsible for the explosions that occurred on Friday morning at a crowded motor park on the outskirt of the town.
Madagali, is 350 km from Yola, the state Capital.
Although volunteers and security men were seen evacuating bodies from the scene, the number of casualties are yet to be determined.
This attack is coming barely two weeks after the Nigerian Army repelled an attack by fleeing Boko Haram terrorists in Gulak village in the same Madagali Local Government Area.
While the Local Government Chairman, Yusuf Mohammed, commended the security agencies and local vigilantes, he also sought more support to secure the area.