The targeted worshippers were gathered outside a seminary in the Tsohuwar Kasuwa area of Potiskum city after visiting the palace of the local emir, said witness Ibrahim Maina and a police officer who requested anonymity.
Maina blamed the explosion on "a bomb" which went off 10 metres from the emir's palace.
"It was a huge crowd and many of them were affected," the policemen told AFP, declining to estimate a death toll. "The priority is to rescue the injured."
The area has seen repeated violence, including attacks on the minority Shiite community.
In July, four Shiites were killed in a bomb attack blamed on Boko Haram at an open-air mosque in the Dogo Tebo area of the the city.
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