The incident is the first of its kind in the village since its recovery from Boko Haram occupation in 2014.
Lala told News Agency of Nigeria (NAN) on Friday in Yola that five others were also injured in the incident which occurred late on Thursday evening.
He said that some children playing by the road side were given a polythene bag containing explosives, which was later exploded by an unknown person passing by in a car.
"In all, seven of them were affected; two died on the spot, four are on admission while one sustained minor injury and has been treated."
The chairman expressed the concern of the council over the incident suspected to be the work of insurgents.
He said that the council had therefore, directed the Mobilization Committee to commence mass enlightenment on the need for parents to caution their children against accepting parcels and gifts from strangers.
In another account, a resident of the village who simply identified himself as Adamu, said that the strangers who gave the bag to the children were riding in a Toyota Starlet car.
"They gave one of the children the bag and told him that it was sent by his father to take home.
"While taking it home with his friends, the curious boys, most of them between six and seven years, decided to open the bag before reaching home and it exploded," Adamu said.
Meanwhile, the Spokesman of the Police Command in Adamawa, SP Othman Abubakar, has confirmed the incident.
NAN reports that the incident is the first of its kind in area since its recovery from Boko Haram occupation in 2014.