Home
/
RELIGION & LIBERTY ONLINE
/
Noodles in Nigeria: When private business breeds economic development
Noodles in Nigeria: When private business breeds economic development
Feb 16, 2026 3:17 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
The two-fold ministry of Jesus
“Jesus not only sought to bring a spiritual salvation,” says Abraham Kuyper in this week’s Acton Commentary, “but also countered human misery and did so up until the very end.” He fed the thousands and healed the sick; the blind could see, the mute could speak, and the dead were raised. This was in no way just a peripheral matter for him, as is proved in that, when John the Baptist investigated his messiahship, Jesus did not tell his messengers...
Scottish independence: The road to ruin?
Nicola Sturgeon, First Minister of Scotland, has called for a second national referendum on independence from the UK. Fleeing Westminster is to her Scottish National Party (SNP) as leaving the EU was to UKIP: its passing passion and the party’s raison d’etre. However, should Scotland leave the UK, it could prove troublesome for a nation that is already struggling. Significant obstacles could leave its economy stagnant. Simply put, Scotland is in poor fiscal shape, and leaving the UK could remove...
Explainer: What you should know about President Trump’s tax reform plan
Yesterday the Trump administration released its tax-reform plan, which the White House is calling the “biggest individual and business tax cut in American history.” Here is what you should know about the plan: What are the goals of the tax reform plan: The stated goals are to: • Grow the economy and create millions of jobs • Simplify our burdensome tax code • Provide tax relief to American families—especially e families • Lower the business tax rate from one of...
Why it matters how ex-presidents make their money
The President of the United States makes an annual salary of $400,000 a year for doing one of the toughest jobs in the world. While the pay may seem relatively pared to CEOs of major corporations, the real payoff for es once they exit the White House. President Obama, for example, has been out of office for exactly 99 days an has already earned at least $800,000—two years worth of a president’s salary—for giving one speech and one interview. Most...
Can ‘European values’ prevent European suicide?
Europe mitting “suicide” due in large part to its rejection of its own values, according to an op-ed just published in the UK. Author Douglas Murray is an atheist and no social issues warrior. Nonetheless, he highlights the role that encroaching secularism, relativism, and cultural self-doubt play in the approaching European endgame: Europe today has little desire to reproduce itself, fight for itself or even take its own side in an argument. Those in power seem persuaded that it would...
The answer to the age-old question of wealth inequality
e inequality has fallen in Canada, leading social scientists to concentrate on “wealth inequality.” A new report from Canada’s Fraser Institute finds that there’s a simple explanation why some segments of the population have accumulated more wealth than others. The answer to the age-old question is old age. Simply put, wealth es about because older people have had more time to save, invest, and acquire financial assets. The new report finds more evidence for the Life-Cycle Hypothesis. Young adults typically...
Evaluating Trump’s first ‘Hundred Day’ economic plan
In a radio address on July 24, 1933, President Franklin D. Roosevelt referred to the 100-day session of the 73rd United States Congress between March 9 and June 17, a session thatproduced a record-breaking volume of new laws. Despite the fact that the 100 days referred to a legislative session and not the beginning of a presidency, the term has e a metric for what a new president can plish and how effective they will be during their term. For...
Religion & Liberty: Memory, justice and moral cleansing
Inside Gherla Prison by Richard Gould (CC BY-NC-SA 2.0) The latest issue of Religion & Liberty is, among other things, a reflection on the 100-year anniversary of the Bolshevik Revolution and the mitted by Communist regimes. For the cover story, Religion & Liberty executive editor, John Couretas, interviews Mihail Neamţu, a leading conservative in Romania. They discuss the Russian Revolution and current protests against corruption going on in Romania. A similar topic appears in Rev. Anthony Perkins’ review of the...
The big ideas of trade
Note: This is post #31 in a weekly video series on basic microeconomics. Trade makes people better off, but how? In this video economist Tyler Cowen discuss the importance of specialization and division of knowledge, and how specialization leads to improvements in knowledge, which then lead to improvements in productivity. (If you find the pace of the videos too slow, I’d mend watching them at 1.5 to 2 times the speed. You can adjust the speed at which the video...
When work as ‘calling’ becomes an idol unto self
Propelled by an expansion in economic opportunity and the resounding cultural calls to “follow your passions,” today’s workers are more easily latching on to the notion of work as “calling,” or a pursuit of “deeper meaning.” Of course, in many ways, it’s a positive development. For Christians, in particular, we hold a view of work as service to neighbor and thus to God, one that proceeds from a more basic stewardship mandate. If this is where we locate “meaning” or...
Related Classification
Copyright 2023-2026 - www.mreligion.com All Rights Reserved