He has been arrested under the Terrorism Act and has been taken to the Serious Crime Suite at Musgrave Police Station to be questioned.
The investigation continues into the incident on Sunday, November 20.
During the incident, delivery driver was hijacked in the Curryneirin area of Derry by masked men and ordered at gunpoint to take a device to Waterside police station in Richill Park.
The driver of the grey Ford Mondeo car was able to raise the alarm at the station and the area was sealed off.
Initially police said the device was a hoax.
But 24 hours later police chiefs admitted that it was a “viable device”, prompting calls for the PSNI clarify how it got the initial so wrong.
Detectives continue to appeal to anyone with information to contact them on 101 quoting reference number 1664 20/11/22.
Information can also be provided to Crimestoppers anonymously on 0800 555 111 or online at: www.crimestoppers-uk.org
The 28 year old has also been arrested on suspicion of kidnapping and possession of a firearm in connection with an incident that is believed to have occurred in Claudy on November 10.
It’s understood a man was threatened with a firearm and taken from premises on Main Street by two masked men.
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