Home
/
RELIGION & LIBERTY ONLINE
/
Noodles in Nigeria: When private business breeds economic development
Noodles in Nigeria: When private business breeds economic development
Mar 20, 2026 8:40 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
Wealth and Fidelity, Golf and Marriage
Amidst all the craziness of l’affaire d’Tigre there are some important questions being raised about the linkage between power, wealth, and faithfulness. The Wealth Report at The Wall Street Journal asks, “Is it harder to stay faithful with large wealth?” The initial sociological findings don’t seem to correlate wealth with adultery, at least at any higher rates than the general population of males (interestingly enough, a 2007 survey led to the conclusion, “When es to infidelity, money has a bigger...
Cizik on Copenhagen: A ‘God moment’
Via Beliefnet, Rev. Richard Cizik, formerly of the National Association of Evangelicals, who once called global warming the “third rail” of evangelical politics, and who also said that evangelicals “need to confront population control,” is at the Copenhagen Climate Change Conference. In this video, Cizik speaks of the critical role that “people of faith” have in translating the challenge of climate change into concrete political action. He says in part, “I don’t believe this moment in time is not without...
MTV’s Wack Morality
On Dec. 3, MTV announced the launch of “A Thin Line,” a multi-year initiative aimed at stopping the spread of abuse through sexting, cyberbullying and digital dating. MTV says that the goal of the initiative is to empower America’s youth to identify, respond to and block the spread of the various forms of digital harassment. While MTV’s program deserves an honorable mention, the network misses the mark by ignoring plicity in glorifying mores associated with sexting, bullying, and dating abuse,...
Secular Uniculturalism and Christmas
In his essay, “Intellectuals and Socialism,” Friedrich Hayek asked how it was possible for a small group of people to have such influence on the ideas and politics that affected millions. He argued that it was because the socialists influenced the “influencers”–those “secondhand dealers in ideas” like the press, educators, and editors, who spread socialist thought into the mainstream. A parallel can be seen in the cultural battles over religious symbols during the Christmas … I mean, the holiday season....
Acton BookShoppe Christmas Sale
Place your order online at our webstore by December 18th for 10% off your entire order and to ensure delivery by Christmas. Use Promo Code CHRISTMAS10 at checkout. See a list of special items on sale here. I especially mend: NIV Stewardship Study Bible (Zondervan)Light for the City: Calvin’s Preaching, Source of Life and Liberty by Lester DeKosterThe End of Secularism by Hunter BakerEconomics in Christian Perspective by Victor Claar and Robin Klay ...
Yesterday’s Mallard Fillmore Comic
Bruce ic strip Mallard Fillmore has long been an excellent examination of conservative principles, current events, and problems associated with government interventionism. The strip appears in over 400 newspapers across the country. Yesterday featured a particularly simple and poignant strip humorously pointing out early attempts to crush the entrepreneurial spirit and the free market. The December 13 strip simply speaks for itself. Right before I saw the strip yesterday I just finished reading a proposal in Michigan that has the...
Science and the Demands of Virtue
The Acton Institute es a new writer to mentariat today with this piece on Climategate. The Rev. Gregory Jensen is a psychologist of religion and a priest of the Diocese of Chicago and the Midwest (Orthodox Church in America). He blogs at Koinonia. —– Science and the Demands of Virtue By Rev. Gregory Jensen Contrary to the popular understanding, the natural sciences are not morally neutral. Not only do the findings of science have moral implications, the actual work of...
Climategate Summary and Update
If you’re looking to catch up on the Climategate scandal, one of our interviewees from The Effective Stewardship DVD church curriculum, Steven Hayward, has an excellent summary and analysis here at The Weekly Standard. Also, our friend Jay Richards has a good piece at today’s Enterprise Blog, which explains why attempts to settle the global warming debate by appeals to scientific consensus merely increase public skepticism. And looking ahead, Paul Mirengoff of Powerline explains why the global warming lobby won’t...
Recommended Reading: The Galileo Code
Over at the Catholic Thing, Scott Walker looks at Climategate and the intolerant groupthink undergirding the “consensus” on global warming. He starts by offering a quote from sociologist Robert Nisbet on “the Enlightenment myth that the Catholic Church brutally oppressed Galileo. Our own time, Nisbet insisted, has seen much worse.” Galileo, as it turns out, was more concerned about the reaction of fellow scientists than he was about Pope Urban VIII and the Inquisition: Most important for our purposes is...
Zinn & the Art of Socialist Education
It’s not too late to order The Call of the Entrepreneur and The Birth of Freedom for stocking stuffers. An eye-opening report by Patrick Courrielche at Big Hollywood makes for a fine motivator. Some excerpts: Enter Howard Zinn – an author, professor and American historian – who, with the help of Hollywood and the History Channel, intends to change the way our pre-K through high school children learn American history [beginning with “a new documentary, entitled The People Speak, to...
Related Classification
Copyright 2023-2026 - www.mreligion.com All Rights Reserved