Police say Irish nationalist militants were likely behind the hijacking and placing of an improvised explosive device in a food delivery vehicle that was ordered to drive to a Northern Irish police station before the device was made safe.

The fast food delivery driver was forced to stop by two masked men at around 10.30pm on Monday and drive to the police station in Lurgan, Co Armagh, around 18 miles from Belfast.

He escaped from the car and alerted security staff that the hijackers had placed an object in the boot, police said.

More than 100 homes nearby were evacuated while a controlled explosion was carried out to make the device safe. Church Place, Church Walk and Wellington Street are currently closed to traffic, as are sections of Market Street, William Street and North Street.

Northern Ireland’s Justice Minister Naomi Long has described it as a “shameful and dangerous attack”.

Ulster Unionist Party leader Jon Burrows has said the incident “bears all the hallmarks of a terrorist attack, probably carried out by dissident republicans”.

"Our investigation is in its early stages but we believe it's highly likely that dissident republican groups are responsible," Police Service of Northern Ireland Assistant Chief Constable Ryan Henderson said in a statement.

"We now know that this was a crude, but viable improvised explosive device. As unsophisticated as it was, it posed a significant risk to the life of the terrified delivery worker, our security staff and the local community."

Mr Henderson previously told the BBC: “At about 10.30pm last night, a fast food delivery driver was driving their white Audi car in the Deramore Drive area of Kilwilkie in Lurgan.

“The driver, in a terrifying development, was forced to stop their vehicle and threatened at gunpoint, and then the hijackers placed an object inside the vehicle and that driver was then forced and threatened to drive the vehicle to Lurgan police station.”

Mr Henderson said the officer drove to the station and then alerted police.

He added: “Since then there has been a really significant policing operation which we have been coordinating overnight to make sure the car and the contents of the car were secure and safe.

“That has led to the evacuation of a number of homes in the area.

“Clearly an absolutely terrifying ordeal to the poor man who was forced to drive the car, hugely disruptive and distressing event for the local community in Lurgan.

“Our specialist terrorism investigation unit have been leading the investigation into it.”

Ms Long said: “This is a shameful and dangerous attack that has put lives at risk and caused disruption and upset to the local community.

“There is absolutely no place for this utterly reckless and abhorrent behaviour.

“I would like to commend the police officers who responded quickly and professionally to this incident and my thoughts are also with all those who have been caught up by this despicable attack.”

DUP MP Carla Lockhart said: “This is an extremely serious and deeply concerning situation for the people of Lurgan.

“Public safety must always come first, and I would urge everyone to follow the advice of the PSNI and avoid the area while investigations are ongoing.

“I recognise the significant disruption this will cause to local residents, businesses and those travelling through the town, but these measures are necessary to ensure the safety of all.”

Sinn Fein MLA John O’Dowd said: “This has caused massive disruption to local families and businesses.

“I hope the town can return to normal as quickly as possible.

“No one wants to return to such scenes and we await the outcome of investigations into the vehicle.

“I want to thank all those who have assisted the families impacted and offered shelter.”