The ineffective and inefficient performance of the Nigerian petroleum downstream sector negatively affects all sectors of the economy, thereby underdeveloping economic growth. The purpose of this document analysis research was to identify the benefits of effective management of the Nigerian downstream petroleum industry to enhance economic development. The sources of materials for this study include documents and literature from peer reviewed articles, journal, books, and case studies which are relevant to the management of Nigerian downstream petroleum sector. The findings indicate that, for effective management of the Nigerian petroleum downstream, the Nigerian government and the private sector should ensure availability of refined petroleum products all year round, involve in well-established gas and petrochemical business and industries, encourage human capital development for operational competence, and ensure appropriate allocation of resources to all aspect of the petroleum supply chain for efficiency. The findings may be used by investors and government agencies to create diversified economic areas for employment, increase revenue, poverty eradication, achieve sustainability, and enhance economic development.