According to the statement, the deceased Boko Haram commander was on serial number 95 on the first list of most wanted Boko Haram leaders released by the Nigerian army last year.
Other Boko Haram fighters escaped with gun shot wounds during the exchange of fire, it added.
At least five of the wanted Boko Haram leaders were arrested late last year in different parts of Nigeria.
The Nigerian government said it has "technically" defeated the ruthless Boko Haram group, although the unrelenting fighters still continue to carry out attacks in the West African country.
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