Yobe State Police Commissioner, Marcus Danladi confirmed the incident. He said the policemen died on the spot.
He said police acted on public complain over the vehicle which was strangely parked at the market area without identifying the owner.
"Police put the vehicle under surveillance and the owner was later apprehended. They took him to the station where the bomb exploded while searching the vehicle," he said.
An eye witness also told Sunday Trust that the incident occurred around 3.30pm when traders reported to the police that a reckless underage driver packed the car and disappears.
"The boy was later caught and taken to station by the police. Hours later the bomb went off and killed a police inspector, driver and mutilated the leg of one mobile police," he said.
He said the bomb destroyed vehicles within the station’s vicinity and affected roofs of some houses close to the divisional police station.