The Islamist militants attacked civilians in their homes and in the town's mosque, local officials said, setting many buildings on fire.
The attack comes a day after a regional force said it had driven the militants from a Nigerian town near Fotokol.
The Boko Haram insurgency has left thousands dead over the last six years.
More than a million people have also been displaced by the militants, who now control a large stretch of land in north-eastern Nigeria.
Chadian offensive
Residents of Fotokol interviewed by the AFP news agency said the militants had killed many people by slitting their throats.
"Boko Haram inflicted so much damage here this morning," Umar Babakalli, a resident of Fotokol, told the agency by telephone. "They have killed dozens of people."
The town's main mosque is said to have been torched.
We should put hands together and fight for a peaceful nigeria.
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