The police say their State Intelligence Department (SID) arrested the suspect at a village in Yobe State.
The Police Command in Yobe State has announced the capture of Haruna Mohammed, 40, who is believed to be a leader of a "notorious terrorist gang".
Dungus Abdulkarim, the command's spokesperson, told journalists in Damaturu on Monday that the suspect was apprehended by the State Intelligence Department (SID).
"He has been involved in terrorising towns, villages and neighbouring states through menacing phone calls, demanding money and valuables from victims.
"The command has been on the trail of Mohammed for his criminal activities.
"A victim from Siminti village reported that Mohammed demanded N3 million and threatened to kill him and his family.
"In an intensive intelligent operation on June 16, detectives from the SID arrested Mohammed at Nangillam, a village in Tarmuwa Local Government Area.
"The suspect has confessed to the crime and even named other members of the syndicate who are currently being trailed," he said.
Mr Abdulkarim advised communities to promptly report security breaches in their areas and reaffirmed the command's readiness to stamp out criminal tendencies in Yobe State.
Yobe State is of the three North-East states that have been most affected by terrorist activities of Boko Haram. The other states are Borno and Adamawa states.
But splinter terrorist groups and cells are believed to have spread to many states in the North-west and North-west where they carry out mass kidnapping, banditry, sacking communities and levying taxes on residents.
