Lagos — A new United Nations report has revealed that Nigeria is losing around 55 million barrels of oil - nearly one-tenth of the country's annual production - every year through theft and smuggling; an illicit trade that often leads to pollution.

The country, which is currently experiencing steady crude supply troubles due to militant activity in the Niger Delta region, has reportedly generated over $400 billion in oil revenue since the precious commodity was first discovered in Oloibiri, Bayelsa State in 1956.

The report, released by the UN Office on Drugs and Crime (UNODC), identified oil theft and smuggling as the greatest threat to West Africa, as it is directly linked to insurgency and violence in the region, according to a BBC report.

Earlier reports stated that the country is losing hundreds of thousands of barrel of crude daily to the activities of illegal bunkerers. There are also unconfirmed reports that some of the militant groups are actively involved in oil bunkering to fund their activities.

Nigeria, which used to produce around 2.5 million barrels of oil daily, has had its production and export quota severely curtailed by attacks on oil multinationals, which carry out most of the drilling activities. It is currently producing around 1.4 million barrels daily. Crude is the mainstay of the nation's economy.

The report also says the smuggling of oil, arms, toxic waste, diamonds and cigarettes continues to flourish in West Africa, and that organised crime is "plundering" West Africa, as illicit goods flood through the region.

Corruption is also rife among senior officials, undermining democracy and economic development, the UN says. But the report did notice one positive trend: a reduction in the flow of cocaine through West Africa to Europe.

The report says in recent years West African countries have been used as a transit point by Colombian drug lords. But increased international attention has smothered some trafficking activity in the past year, it says.

According to the report, West Africa had also become a major destination for electronic waste from Europe, such as old phones, computers and batteries, which is another threat to the environment.

"Organised crime is plundering West Africa, destroying governments, the environment, human rights and health," said UNODC head, Antonio Maria Costa.

The agency warned that democracy and development would continue to falter in West Africa while crime and corruption flourish.