Mr Zubairu, an army captain, said some weapons and logistics were recovered from the terrorists.
Troops of Sector III of Operation Hadin Kai and the Multi-National Joint Task Force (MNJTF) have foiled an attempt by insurgents to attack Monguno in Borno.
This is contained in a statement on Friday by the spokesperson of the sector, Babatunde Zubairu.
Mr Zubairu, an army captain, said some weapons and logistics were recovered.
"Following credible intelligence reports on the activities of terrorists, troops in conjunction with the Hybrid Forces swiftly and professionally responded to an infiltration attempt by terrorists on the Bakassi Response Area in Monguno town.
"Two of the terrorists were neutralised while some fled with severe gunshot wounds.
"One AK 47 rifle with two-loaded magazines were captured along with several items which include mobile phones and five newly acquired motorcycles," Mr Zubairu said.
He said that five people were picked up by the army around the area during the operation and gave been united with their families after an investigation revealed that they had no connection with the terrorists.
"In compliance and adherence to the International Humanitarian Law as well as international best practices on armed conflicts, the troops profiled the suspects and thereafter handed them over in good health and sound minds to their respective families and authority."
He said the Sector Commander, Abdulsalam Abubakar, commended the troops for their gallantry and professionalism in the fight against the insurgents.
Mr Abubakar, a major general, called for more collaboration and support from host communities for maximum results.