The cause of the late on Friday blast was not immediately clear, but Boko Haram Islamists have attacked Bauchi repeatedly during their five-year uprising aimed at creating a strict Islamic state in the north.
Bauchi state police spokesperson Mohammed Haruna said the targeted building in the Bayan Gari neighbourhood on the outskirts of the city was widely known as a brothel.
"Ten people were confirmed dead, while 14 others sustained various degrees of injury," Haruna said, adding that the explosion went off at roughly 22:00.
"The entire area has been cordoned off and [the] scene secured," Haruna said. Bomb attacks on targets which Boko Haram has branded sinful - including bars, churches and schools teaching a Western curriculum - have formed a major part of the insurgency.
Nigeria has estimated that more than 10 000 people have been killed since the conflict began in 2009. The violence has escalated in recent months, with more than 2 000 deaths recorded since the start of the year.
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