A source, who spoke with SaharaReporters on Monday, said the insurgents attacked the community around 7:30pm and began to fire sporadically at anything within sight.
He said the people were presently running into nearby bushes and the Kumadugu-Yobe River to avoid being killed or kidnapped.
Another resident of the community told SaharaReporters that the town was up in flames with gunshots continuing.
The resident said he narrowly escaped and took refuge in a nearby village, adding that the attack was a major one.
Dapchi was attacked on February 19, 2018 by insurgents, who abducted 110 schoolgirls from their dormitory at Government Girls Science and Technical College.
The girls were later released in a deal with the Nigerian Government but one of them, Leah Sharibu, was held back because she refused to convert from Christianity to Islam.
Also in March, 2020, Boko Haram fighters attacked the town and killed seven policemen.