The search was assisted by the Police Service’s Tactical Support Group, along with local district officers.
The 40-year-old man was arrested under the Terrorism Act and taken to the Serious Crime Suite at Musgrave Police Station for questioning.
Detective Inspector Corrigan said: “The search, and subsequent arrest, is part of an investigation into the activities of the INLA in the north west.
“Two houses were searched and, at one of the properties, a mobile phone was seized and a man arrested.”
Detective Inspector Corrigan continued: “We’re grateful for the support of our partner organisations and of local communities; and I’m keen to reiterate our appeal for anyone with information, or indeed concerns, to contact detectives on 101.”
Information can also be provided to Crimestoppers anonymously on 0800 555 111 or online at: www.crimestoppers-uk.org
A report can also be made using the online reporting form via: www.psni.police.uk/makeareportTags: