The convoy of farmers and fishermen left the garrison town of Monguno on Wednesday on their way to Lake Chad when their flat-bed vehicle ran over a mine believed to have been planted by terrorists, the sources said.
Militants have been driven back from territory they controlled a few years ago in Nigeria's northeast Borno state but they still carry out ambushes and target convoys travelling out of towns protected by army garrisons.
"The vehicle hit the explosive planted on the dusty road around Mosquito camp, three kilometres outside Monguno around 9:30 am, causing an explosion that ripped through the vehicle," said Musa Kaka, a member of militia group that helps the army.
"We recovered 10 dead bodies and 23 injured victims from the scene," Kaka said.
The dead were buried on Wednesday while the injured were taken to hospital in the town, said Bello Adamu, another militiaman who gave the same toll.
Another militia leader, Umar Ari, also confirmed the casualty figure.
Nigeria's military gave no immediate statement on the incident.