Pictures from the village of Dalori show burned-out buildings and charred livestock.
Fires from the burning village could be seen in the the city of Maiduguri, nearly 10km (six miles) away.
One witness reported hearing the screams of children as huts were set on fire.
Other survivors say the shooting on Saturday evening continued for hours and left barely any parts of the village untouched.
Residents said at least 50 people were killed, although a Reuters reporter counted 65 bodies at a hospital morgue.
Witnesses said the attackers arrived on motorbikes and in lorries and were wearing military uniforms, Nigerian media reported.
Survivor Alamin Bakura told the Associated Press that he hid in a tree as the attackers struck on Saturday evening.
He said he saw militants firebomb huts and heard the screams of children as people were burned to death. He said several members of his family were among those killed or wounded.
Boko Haram has also been blamed for deadly bomb attacks in neighbouring Chad on Sunday.
At least three people were killed and dozens wounded when two suicide bombers struck two locations near Lake Chad, officials said.
Boko Haram's Islamist insurgency has claimed thousands of lives and displaced more than two million people over the past six years.
Recent attacks have involved suicide bombers targeting civilians in Nigeria's north-east and across the border in northern Cameroon.
Cameroon is part of a regional coalition fighting the group, along with Nigeria, Niger, Chad and Benin.
Why Boko Haram remains a threat
At least 50 people are reported to have been killed in north-eastern Nigeria in a gun and bomb attack by suspected Boko Haram militants.