Home
/
RELIGION & LIBERTY ONLINE
/
Noodles in Nigeria: When private business breeds economic development
Noodles in Nigeria: When private business breeds economic development
Apr 1, 2026 12:16 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
Kamala Harris’ ‘Equality vs. Equity’ video endorses injustice and discrimination
With 48 hours to go before the 2020 election, the Biden campaign unveiled a rare, cogent glimpse into its philosophy and plans should it prevail. Naturally, it did e from Joe Biden but from an animated video narrated by Kamala Harris titled “Equality vs. Equity.” The ticket made the unusual decision to close its campaign by taking a firm stance against equality. On Sunday, Harris tweeted out a video showing a white mountain climber beginning well above a black mountain...
How Amy Coney Barrett could save America
Although Amy Coney Barrett has only been a Supreme Court justice for a matter of days, she has the potential to act as the harbinger of a renewed America. She is not only potentially a new role model for working women, but she may also serve as the apostle who introduces Americans to a refreshingly positive view of their own Constitution. In the process, she may reverse the nation’s headlong rush to embrace socialism. With her unassailable credentials, personal popularity,...
Justice Amy Coney Barrett: a new model for working women?
Judge Amy Coney Barrett became Justice Amy Coney Barrett on Monday night. Barrett has called herself “a different kind of lawyer,” and now she’s breaking new barriers. ACB may serve as an innovative model for professional women, as well as an opponent of misguided government programs and policies that encourage workplace discrimination against women. “Tonight, Justice Barrett es not only the fifth woman to serve on our nation’s highest court, but the very first mother of school-aged children to e...
After her ‘Vanity Fair’ shoot, AOC must hear this speech from Fr. Robert Sirico
Alexandria Ocasio-Cortez has touched off fresh controversy in a Vanity Fair cover story. Although she called the president of the United States a “motherf—er” and expresses her interest in seeking a “higher position” in politics, what caught the public imagination is its panying photo shoot in which the democratic socialist’s apparel in no way resembled the clothing of the proletariat. AOC wore clothing designed byAliette, Carolina Herrera, Wales Bonner, Christian Louboutin, and a $2,850 dress from Loewe, which the magazine...
Peaceful transfer of power is more important than Biden or Trump
Whether rooting for Joe Biden or Donald Trump, all Americans should hope for a peaceful transfer of power on January 20. While the U.S. has historically enjoyed peaceful transfers, many pundits have predicted scenarios of uncertainty after the election. A peaceful e is endangered by forces both on the Right and the Left. For one half of the nation, a Biden win would spell disaster, while for the other half, a Trump win would initiate the five stages of grief....
A British view of the 2020 presidential election
When es to elections, my preference is for an “ideas person” – someone who can articulate a vision for political and economic liberty, a constitutionalist, someone with a moral outlook informed by faith and advocacy for small government. I am usually disappointed. Ideas people are rarely elected – in the UK, the last such example was Margaret Thatcher, the prime minister from 1979-1990. She understood that, in the same way that a household must balance its budget, so too must...
DOJ: Government grants induced Christians to commit fraud
Even the federal government now admits that its federal financial aid policy is so immoral it can turn theology students into criminals. The Justice Department accuses a Christian theological institute of creating phantom students in order to cash in on federal college funding. According to prosecutors, the North Carolina-based Apex School of Theology set up a satellite in Georgia to serve students in Georgia, Alabama, and Florida. There’s just one problem: There were no students. The DOJ says that Apex’s...
‘For Love of Neighbor’: the documentary that explores authentic Christian political witness
In the heat of each political season, we are bombarded by arguments about which candidate is the moral choice and which political platform is patible with Christian values and beliefs. Such arguments typically place a heavy emphasis on specific issues and policies – and rightly so. But throughout our debates about short-term goals and final es, we should also consider the more foundational aspects of such actions. As Christians, our political responsibility involves more than filling circles on ballots or...
Do economists agree?
Listen to politicians or cable news, and you will get the impression that economics is merely a thin veil for partisanship, the greatest mercenary discipline for justifying any policy. You can seemingly find at least one economist to agree with you; liberal economists favor liberal policies, while conservative economists favor conservative policies. While there are certainly some economists who make their discipline mercenary to politics, there is a surprising amount of agreement within the discipline. Jay Richards makes the case...
The browning of the Golden State
Native Californians used to tell ers to the state a little joke: “Of course, California has four seasons: earthquake, brushfire, mudslide, and drought.” Alas, that dark humor is too accurate to be funny anymore. Progressive environmental policies have so deleteriously impacted the state’s ability to manage its infrastructure and husband its bounteous resources that the Golden State is withering brown. California was once our richest and most beautiful state. It became the nation’s most populous, because it was a land...
Related Classification
Copyright 2023-2026 - www.mreligion.com All Rights Reserved