The explosion was said to have occurred around 8pm at a fruit and vegetable market beside a main road in the Jimeta area of the state.
It has not been confirmed as at press time if it was another Boko Haram attack - but all indications are that the terrorists were behind the blast.
The insurgents had hit Yola with two deadly bomb attacks this year, with more than 50 people killed.
The last attack occurred in October.
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