The shooting came after a bomb blast had targeted two soldiers wounded army.
Maiduguri has been under siege by the Islamist militant group Boko Haram, which wants Sharia law in Nigeria.
On Sunday, the military said killed 30 members of Boko Haram's in Damaturu.
Witnessed in Maiduguri, claimed that the soldiers began to fire indiscriminately on the people and set fire to homes and businesses.
An Associated Press reporter in the city said he counted 30 bodies and 50 buildings were set on fire.
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