Home
/
RELIGION & LIBERTY ONLINE
/
Noodles in Nigeria: When private business breeds economic development
Noodles in Nigeria: When private business breeds economic development
Apr 21, 2026 2:49 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
The Vatican’s war on bureaucracy
Pope John XXIII was once asked how many people worked for the Vatican. “About half” he humorously replied, alluding to a workforce not known for its speed and efficiency. Under the pontificates of John Paul II and especially Benedict XVI, however, the Vatican seems to have made some efforts to improve the delivery of various services. Take for example this interview with the city-state’s head physician, Dr. Giovanni Rocchi, who boasts of minimal waiting periods for patients at Vatican-run health...
Solzhenitsyn, a great soul, laid to rest
At Solzhenitsyn’s grave. Donskoy Monastery, Moscow. Aug. 6, 2008. The Associated Press has published a moving series of photographs from Alexander Solzhenitsyn’s funeral here. Acathistus By Alexander Solzhenitsyn When, oh when did I scatter so madly All the goodness, the God-given grains? Was my youth not spent with those who gladly Sang to You in the glow of Your shrines? Bookish wisdom, though, sparkled and beckoned, And it rushed through my arrogant mind, The world’s mysteries seemed within reckon, My...
The religious left offers advice to McCain and Obama
Mark Tooley pens another brilliant critique of the latest endeavors of the religious left in this piece titled “God’s Welfare State” in FrontPage Magazine. mentary is a response marked with reason and clarity to left-leaning interfaith groups who are calling for more government programs and initiatives to tackle poverty. Tooley also notes in his piece that the signers of the letter calling for Senator John McCain and Senator Barack Obama to address their party conventions with a ten year plan...
Luckey joins Acton PowerBlog
Dr. Luckey We e Acton adjunct scholar Dr. William R. Luckey, Professor of Political Science and Economics at Christendom College, to the PowerBlog. Dr. Luckey has expertise in Political Philosophy, Business and Economics, and Theology, and posts from his excellent Catholic Truths on Economics will be shared here. His tagline explains why he is a perfect fit for the PowerBlog: Guidance on Economics, its importance for Catholics, its importance to civilizations, and what are its objective truths. It might sound...
Solzhenitsyn and His Critics, cont.
In this week’s mentary, Solzhenitsyn and His Critics, I point to the criticism that has been leveled for many years at the writer who turned out to be not exactly the sort of dissident that many in the West were waiting for. I suspect that much of this antipathy to Solzhenitsyn was based on his promising moral vision, which seems to offend some people. I say: Solzhenitsyn’s critique of modern societies went much deeper than ideology. He drew from a...
Poetic justice
On an episode of NPR’s Talk of the Nation last month, professor Jay Parini of Middlebury College discussed his role in the criminal justice sentences given to students who were involved in the vandalism of the former summer home of renowned poet Robert Frost. Some of the younger students involved took part in a class on Robert Frost as part of an alternative sentencing plea agreement. As Prof. Parini says, “It’s a sort of unique punishment, talk about the punishment...
Nannyfornia
Writing in the London-based Times, Chris Ayres in e to Nannyfornia” looks at the “frenzy of puritanical edicts from California’s politicians” that cover a host of sins, ranging from transfats to the highly objectionable use of the terms “Mom” and “Dad.” Ayres raises a “disturbing” question: Is Nannyfornia providing us with a glimpse of what Obama’s America might look like? After all, Obama is a classic banner. He recently proposed banning all toys from China. He banned his own staff...
CRC Sea to Sea tour week 6
The sixth week of the CRC’s Sea to Sea bike tour has pleted. The sixth leg of the journey took the bikers from Fremont to Madison, a total distance of 548 miles. The “Shifting Gears” devotional for this week does a good job reminding us of the appropriate relative value of temporal vs. eternal things. “A human being’s life consists not in the abundance of his or her possessions, but in the blessing of loving relationships. May we be shrewd...
‘Solzhenitsyn, Optimist’
In the Wall Street Journal, Edward E. Ericson Jr. asks whether “this week’s evenhanded obituaries signal merely momentary respect for the newly dead or augur better days ahead for Solzhenitsyn’s reputation.” In “Solzhenitsyn, Optimist,” Ericson observes that the writer “had the last laugh” in his struggle against the Soviets. Solzhenitsyn has described himself as “an unshakable optimist.” On a dark day when one of his helpers had been arrested and interrogated and ended up dead (who knows how?), he could...
Religion & Liberty: David W. Miller update
The feature interview for the Winter issue of Religion and Liberty was Dr. David W. Miller, who at the time served as the Executive Director of the Yale Center for Faith & Culture. With his permission, Dr. Miller has agreed to let us inform our readers that he is taking a new position at Princeton as the Director of the Princeton University Faith & Work Initiative. The Trinity Forum is the only organization with an updated biography mentioning his new...
Related Classification
Copyright 2023-2026 - www.mreligion.com All Rights Reserved