Home
/
RELIGION & LIBERTY ONLINE
/
Noodles in Nigeria: When private business breeds economic development
Noodles in Nigeria: When private business breeds economic development
Mar 16, 2026 8:32 PM

In the West’s various efforts to alleviate global poverty, we continue to see the promotion of top-down solutions at the expense of bottom-up enterprises and institutions. Yet despite the setbacks and slowdowns caused by various governments and foreign aid, the entrepreneurs and workers on the ground aren’t sitting idly by.

Across the developing world, people aren’t waiting for policies to change, conditions to improve, handouts to be given, or risks to evaporate. They are actively transforming their environments and creating value with creative vision—demonstrating the power of what William Easterly has called “searching” vs. “planning.”

In an excerpt from their new book, The Prosperity Paradox: How Innovation Can Lift Nations Out of Poverty, Clayton M. Christensen, Efosa Ojomo, and Karen Dillon point to a striking example of this, telling of the story of the rise of Indomie instant noodles in Nigeria.

In 1988, an Indonesian pany called Tolaram decided to bring the noodles to Nigeria, seeing an opportunity to bring a low-cost food item to a struggling nation. At the time, Nigeria was far from a stable economic environment, burdened under military rule after a recent coup. “Life expectancy for its 91 million people was 46 years,” the authors explain. “Annual per capita e was barely $257 (approximately $535 today)…a staggering 78 percent lived on less than $2 a day.”

But while some might have seen such a nation as “poor” and “not investable,” Tolaram spotted the ultimate economic resource: the Nigerian people. “Tolaram has shown that out of very little, a market can be created—and with the birth of a es the benefits that can lead to development,” the authors explain. pany’s growth track turns the conventional wisdom about development on its head in that, there was little attractive about investing in Nigeria when Tolaram decided to enter the country.”

Whereas Nigeria’s corrupt government and foreign powers had narrow vision, one business searched and saw an opportunity to build something new. Yet even Tolaram didn’t foresee how much “external impact” the business would have on Nigerian society and culture as a whole.

At the time of initial introduction, such noodles were not by any means part of Nigerian cuisine, but by 1995 they had e so popular that Tolaram began to move many of its manufacturing operations there, as well. Given the severe lack of basic infrastructure in the area, this meant taking a broad approach to local development.

“Tolaram has invested more than $350 million to create hundreds of thousands of jobs, developed a pany, and built infrastructure including electricity and sewage and water treatment facilities,” they explain. “Tolaram has also built educational institutions, munity organization programs, and provided millions of dollars in tax revenues. Without overstating it, Indomie noodlesisdevelopment.”

Similar to panies that founded India’s infamous “private city,” Tolaram quickly became more than simply an employer. Not only were they providing jobs and delivering their product; they were also weaving munity needs like “electricity, waste management, and water treatment” into their business model, making the fruits accessible to local residents, as well.

The results for Tolaram’s bottom line have been positive, to be sure, with more than 4.5 billion packs of their Indomie noodles sold annually in Nigeria. But in providing its product and services, Tolaram has also proven to be a substantial benefit for the Nigerian people as well, leading to new roads and power sources, job opportunities, education, and—of course—a beloved, inexpensive food.

The authors summarize the scope of these improvements as follows:

When Tolaram pulls a recent graduate from a local university into its operations and provides employment and training for the new employee, it first, increases the productivity of its own operations and, by extension, that of the region. Second, it reduces unemployment and, as a result, indirectly reduces crime since people with jobs are less likely to engage in criminal activities to try to meet their basic needs.Third, it contributes additional e taxes and consumer spending. All of these things might have been core regional development objectives, but for the executives at Tolaram, they were just the natural result of operating their growing business.

… Tolaram directly employs more than 8,500 people, has created a value chain with 1,000 exclusive distributors and 600,000 retailers, and has revenue of almost $1 billion a year, all the while contributing tens of millions of dollars in taxes to the Nigerian government. Tolaram also created a pany that owns and operates more than 1,000 vehicles. The pany now serves both Tolaram and other panies, with 65 percent of its ing from external clients.

Tolaram offers yet another example of how ordinary businesses—fueled by the risk-taking of their leaders and the diligent creative service of their workers—can have powerfully transformative social and economic effects, even amid government turmoil and constant barriers and distortions.

But while these investments may be possible despite local political turmoil and interventionist planners, and though they remind us of the resiliency of entrepreneurs and the power of basic value creation, such successes also indicates how much untapped creative potential remains. “It’s through this process of making one’s product available, affordable, and therefore accessible, that innovators create the right solutions for new markets,” the authors conclude. “A market-creating innovation then, isn’t simply a product or a service, it is the entire solution.”

That “entire solution” doesn’t rely on distant planners devising “efficient” schemes. It emerges when we further allow and empower the searchers to get to the searching.

If we were to set our focus on removing barriers and including others in circles of exchange, whether through freer trade or the improvement of property rights, we would not only see new enterprises. We would also see new mon-good improvements, flowing from the resources, virtues, and innovative attitudes that are cultivated and reinforced therein.

Image: Indomie Mie Goreng Iga Penyet, (CC BY-SA 3.0)

Comments
Welcome to mreligion comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
RELIGION & LIBERTY ONLINE
Whom Would Jesus Indebt?
Putting ourselves and our children further in debt, notes Timothy Dalrymple, is not the way to help the poor: One of the great difficulties of this issue, for Christians, is that the morality of spending and debt has been so thoroughly demagogued that it’s impossible to advocate cuts in government spending without being accused of hatred for the poor and needy. A group calling itself the “Circle of Protection” recently promoted a statement on “Why We Need to Protect Programs...
Samuel Gregg On The War On Poverty: ‘Pass More Laws And Throw More Dollars At The Problem’
In today’s National Review Online, leading economists are asked ment on the 50th anniversary of Lyndon Johnson’s “War on Poverty.” Acton’s Director of Research, Sam Gregg, weighs in: As we know now, Johnson’s offensive against poverty did not have the impact envisaged by its progenitors. By the early 1970s, the failure was stark. Even today, this failure remains Exhibit A for the ineffectiveness of government intervention when confronting many economic problems. Not that this has led to any major rethinking...
Is the $17 Trillion Federal Debt Immoral?
Even when we agree on what Biblical principles should guide our political choices, evangelicals from the left and right rarely agree on policy solutions. But there is one area where there appears to be an increasingly significant level of agreement: the immorality of our national debt. At Christianity Today, David P. Gushee — an ethicist and politically progressive evangelical — explains why the $17 trillion national debt is both immoral and unwise: Most progressive evangelicals who address government spending focus...
The Bond of Fellowship
I was reading an essay that I found in an old book I bought in Vermont. Dr H.J. Laski (Oxford and Yale) wrote, “The less obvious the differences between men in the gain of living, the greater the bond of fellowship between them.” In other words the less we talk about differences between the rich and poor, the better we will all like each other and get along. In the Depression which began as he was writing, nearly everyone was...
Detroit’s ‘Get out of Bankruptcy Free’ Card
Aaron M. Renn’s reflections on the implications of Detroit’s bankruptcy are worth reading, especially as relate to the DIA, a topic of some previous interest over the last year or so: In the case of the DIA, the city owns the museum and the collection. Hence the question of whether or not art should be sold to satisfy debts. If it were typical separately chartered non-profit institution, this wouldn’t even be a question. At this point, I’d suggest cities ought...
The Call to Work and the Freedom to Flourish
TheInstitute for Faith, Work, and Economics just released a nice little video that captures the importance of vocation and the beauty of work, elevating freedom as the primary driver of human flourishing. Watch it here: There is a way that leads a man to flourish. It is freedom: the freedom to discover his true potential, to keep the fruits of his labor, to find fulfillment in his work. These freedoms are the right of every person, because e woven into...
At-A-Glance: Public Vs. Private Sector Health Care
The Washington Examiner has published a chart that clearly lays out the difference between Obamacare versus private sector health care. Using Walmart as an example (despite the employer’s much-disparaged employee benefits), Elliot Smilowitz at the Examiner shows that the private sector is able to parable health care at much less expense than Obamacare. ...
By the Numbers: The War on Poverty
Fifty years ago today, President Lyndon B. Johnson gave his 1964 State of the Union Speech, in which he launched the ‘war on poverty.’ Within four years of that speech, the Johnson administration enacted a broad ran of programs, including the the Job Corps, Upward Bound, Head Start, the Neighborhood Youth Corps, the Social Security amendments creating Medicare/Medicaid, the creation of the Department of Housing and Urban Development, and over a dozen others. Here are a few numbers related to...
Book Review: ‘The New School’ by Glenn Harlan Reynolds
Book information: The New School: How the Information Age Will Save American Education from Itself by Glenn Harlan Reynolds. Jackson, TN: Perseaus Books, 2013. Pp. viii + 106. Paperback. $21.50. Instapundit’s Glenn Harlan Reynolds’ The New School: How the Information Age Will Save American Education from Itself is a clear and succinct, yet thorough, essay on creative destruction and American education. This slim volume (only about 100 pages) is divided approximately into 50 pages on higher education, 25 on secondary...
Fatherlessness and the War on Poverty
In addition to reading Joe Carter’s striking by-the-numbers piece on the War on Poverty, and in keeping with Sam Gregg’s reflections on the deeper social and cultural forces at work, I heartily mend taking in Josh Good’s excellent retrospective in AEI’sThe American. Leveraging a lengthy quote from Herman Bavinck’s The Christian Family, one I’ve put to use myself, Good notes the “inverse impact of changing family structure on productive work and a flourishing economy”: The fact is, poverty is not...
Related Classification
Copyright 2023-2026 - www.mreligion.com All Rights Reserved