The army personnel came across the insurgents while they tried to kidnap residents along Mallamawa in Jibia.
A shootout soon ensued, leading to the killing of many of the hoodlums and injuries to scores more.
Two soldiers were also injured in the exchange of fire.
In a statement by the army spokesperson, Captain Kayode Owolabi, troops have dominated the area.
According to him, troops are in pursuit of the fleeing bandits, with a view to rescuing the two customs officers.