Skeoge Road has reopened after last night's and today's security alert.
PSNI confirmed that a wheelybin, which exploded just before midnight, contained a viable explosive device that threw shrapnel over a wide area and said the incident has all the hallmarks of an attack by dissidents.
Chief Inspector Tony Callaghan said: “Reports of a loud bang were received at about 11.45pm last night. Officers attended the area and it appeared something inside a bin had exploded.
Further daylight checks of the area were conducted.
The Skeoge Road was closed between the Glengalliagh roundabout and the Buncrana Road.