The facility was an Improvised Explosives Device- (IED) making factory said Col. Sani Usman, Acting Director of Army Public Relations on Friday.
According to him, three people suspected to be a Boko Haram contact and a foot soldier were also arrested.
Usman said the factory was discovered at Miyati and Nyaleri villages in the Damboa Local Government Area of Borno, former strongholds of the insurgents situated along the Maiduguri-Bulabulin-Damboa road, which has seen increased insurgency activities since the turn of the year.
Usman said the destruction of the factory represents a major achievement of the Nigerian army against the group which has been fighting a violent insurgency in the northeast of the country since 2009.
According to him, other items discovered were a Peugeot pickup van, foodstuffs, a 10-KVA Lister generator, gas cylinders, a borehole pumping machine and three bags of maize.
One bag of millet and 13 empty AGO jerry cans were also found there.
He stated that the operation was a joint effort between ground troops and the Nigerian Air Force which provided air cover and tracking.
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