Home
/
RELIGION & LIBERTY ONLINE
/
Noodles in Nigeria: When private business breeds economic development
Noodles in Nigeria: When private business breeds economic development
Apr 20, 2026 8:20 AM

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
Colloquium: Philosophy and Theology in the 21st Century
I am looking forward to presenting a paper at an ing colloquium in Berekely on July 16-20: “What has Athens to do with Jerusalem: Dialogue between Philosophy and Theology in the 21st Century.” From the colloquium press release: The Province of the Most Holy Name of Jesus (Western U.S.A.) and its center of studies, the Dominican School of Philosophy and Theology, will host a colloquium to discuss the intersection of philosophy and theology, titled: “What has Athens to do with...
What Would God’s March Madness Look Like?
“What would God’s March Madness look like?” asks David Mitchell in this week’s Acton Commentary. petition focus churches and church members the same way a college tournament focuses people on basketball?” What counts as service to others? If you prayed about it and decided that it was service that’s good enough. The intent is that service to friends and family might not count because that is something you are supposedly already doing. You’re already coaching your kids and mowing your...
If a Company Can Be African American, Why Can’t It Be Religious?
What race is pany? Asian,Samoan,American Indian, other? If you find that question absurd you probably haven’t heard (I hadn’t) that a for-profit can be be African American — an African American person — under federal law. According to Matt Bowman, that was theoverwhelming consensus view by an Obama appointee to the Fourth Circuit court of appeals.The rulingallows panies to object to racial mitted against them under the Civil Rights Act of 1964. Bowman explains that inCarnell Construction Corporation v. Danville...
Visualizing ‘The Forgotten Man’
Amity Shlaes – Graphic Novelized! In November of last year, we had the privilege of ing bestselling author Amity Shlaes for a visit here at the Acton Building while she was in Grand Rapids to speak about Calvin Coolidge at Grand Valley State University’s Hauenstein Center for Presidential Studies. Aside from being a fine author of some very thought provoking books on history and economics, she’s a delightful lady, and it was a pleasure to have an opportunity to make...
Why is a Michigan School District Discriminating Against Christians?
Usually, discrimination against Christians is subtle and discreet. But the Ferndale Public Schools in Oakland County, Michigan, seems to be quite open about their bias. As Michigan Capitol Confidential discovered, the teachers union contract requires the district to provide “special consideration” to “those of the non-Christian faith” in hiring decisions: The contract ran from 2011 to 2012 but was extended to 2017. The teachers belong to the Ferndale Education Association, a division of theMichigan Education Association. Regarding promotion to a...
Dorothy Day: A Saint For Our Times?
Religion & Ethics Newsweekly featured the following video on Dorothy Day. Her cause for canonization in the Catholic Church has been championed by Cardinal Timothy Dolan, who says Day’s life represents so much of the struggle of our times. So there was sexual immorality, there was a religious search, and there was a pregnancy out of wedlock and an abortion. Her life, of course, like Saul on the way to Damascus, was radically changed when she became introduced to Jesus...
Fr. Philip LeMasters on Orthodoxy and Partisan Politics
Today at Ethika Politika, I review Fr. Philip LeMasters’ recent book The Forgotten Faith: Ancient Insights from Contemporary Believers from Eastern Christianity. With regards to the book’s last chapter, “Constantine and the Culture Wars,” I write, … LeMasters does a good job in acknowledging the line between principles of faith and morality on the one hand, and prudential judgments that may not be as clear-cut on the other. He does not give the impression of advocating any specific political program;...
Hobby Lobby in the Fiery Furnace
I have been known to parisonsbetween the punitive HHS mandate and King Nebuchadnezzar’s infamous power trip—an analogy that casts theGreen Familyand others like them as the Shadrachs, Meshachs, and Abednegos of modern-day coercion subversion. As I wrote just over a year ago: As we continue to see Christian business leaders refusing to bow to King Nebuchadnezzar’s Golden Image—choosing economic martyrdom over secularist conformity—the more this administration’s limited, debased, and deterministic view of man and society will reveal itself. Through it...
Calvin Coolidge on the Importance of Teachers and Spiritual Instruction
Calvin Coolidge’s autobiography was published in 1929, shortly after Coolidge left the White House. He wrote the book in long pletely by himself. Sales at the time were great but mentators panned it as being too short and simplistic with little new information or juicy tidbits. In Amity Shlaes’s biography of Coolidge she notes, “Not every reader appreciated its sparse language, but the short book would stand up well to the self-centered narratives other statesmen produced, especially those who relied...
‘Pretty Woman’ And Porn: Enslavement As Entertainment
The 1990 movie “Pretty Woman” is still wildly popular; it relies on the Hollywood canard of the “hooker with a heart of gold.” In the movie, a prostitute is paid to spend the weekend with a wealthy handsome gentleman. The two fall in love, and she is swept off her feet by the courtly man who initially wished only to utilize her. Cue the hankies, sigh for the romance, and fade to black. Now, the movie is being made into...
Related Classification
Copyright 2023-2026 - www.mreligion.com All Rights Reserved