The blast took place at a fruit and vegetable market near a main road, Al Jazeera reports.
No one claimed responsibility, but the news agency reports that the blame will likely be placed on Boko Haram, the group that has killed thousands as it attempts to promote Islamic law in Nigeria.
Tuesday night's blast breaks a three-week hiatus in bombings after a string of suicide attacks culminated in twin explosions in mosques in two northeastern cities that killed 42 people and wounded more than 100 on Oct. 23.
One of the mosques attacked was in Yola, capital of Adamawa state, where the blast took place Tuesday night.
The dead and the injured were evacuated to hospitals, Sa'ad Bello, coordinator of the National Emergency Management Agency, told the Associated Press.
Most victims were vendors and passers-by, said Deputy Superintendent Othman Abubakar, the police spokesman for Adamawa state.
Nigeria's military has reported foiling several suicide bombers recently and killing and capturing insurgents as it destroys Boko Haram camps in air raids and ground attacks.
Some 20,000 people have been killed in the 6-year-old Islamic uprising that has spread to neighboring countries.