A management team has been set up to monitor cattle traders and butchers in an effort to clamp down on all illegal activities, Governor Kashim Shettima said in a statement.
He said that insurgents have been using unscrupulous middlemen to sell stolen cattle.
Boko Haram has stolen thousands of cattle in Nigeria and nearby Cameroon.
Trade was suspended about two weeks ago at Gamboru cattle market - one of the biggest in Africa.
Cattle markets in Dusuman, Shuwari and Ngom have all also been suspended.
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