This, eyewitnesses said, led to the death of many people while scores were injured. Today, as at 3:00 pm (Wednesday), 10 more bodies were brought in and buried.
Another grave digger, who also asked for his name not to be used, supported the account.
Scores were injured in the attacks and were receiving treatment at various hospitals in Mubi. The town was briefly taken over by a non-state armed group in October 2014.
Osinbajo expressed his condolences to the victims and their families, and to the Government and people of Adamawa State.
Vice President Yemi Osinbajo has directed security agencies to beef up security in markets and places of worship in Mubi, Adamawa, after a mosque bombing incident that claimed over 60 lives.
The jihadists have repeatedly used suicide bombers against "soft" civilian targets such as markets, mosques and bus stations across the northeast.
Mubi, the second largest town in the state with approximately 175,000 inhabitants, is a major market town in the region with close trading ties to neighboring Cameroon.
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The police suspect that the explosion involved the Islamist group Boko Haram.
The state Commissioner of Information and Strategy, Ahmad Sajoh, made this known in a statement made available to NAN in Yola.
Last Thursday, at least four people were killed when suicide bombers and fighters attempted to storm the Borno state capital, Maiduguri, raising fresh questions about security.
Insecurity has become a politically charged subject in the run-up to a national election next year.
The sale of the aircraft was previously blocked by the Obama administration after the Nigerian airforce mistakenly bombed a camp for people displaced by Boko Haram, killing 112.
Meanwhile, the USA military officials in Abuja have also questioned the Nigerian tactics in the face of the guerrilla tactics used by the Boko Haram militants.