Home
/
RELIGION & LIBERTY ONLINE
/
Noodles in Nigeria: When private business breeds economic development
Noodles in Nigeria: When private business breeds economic development
Mar 6, 2026 3:58 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
What Does the World Think of Capitalism?
What do people around the globe think of capitalism? To find out the answer the Legatum missioned YouGov to ask ten questions of populations in seven nations. First, the bad news. Contrary to overwhelming evidence, large majorities in all seven of the nations surveyed agree that the poor get poorer in capitalist economies. The survey also notes that majorities of the populations in America, Brazil, India, Thailand, and Indonesia support protectionist measures to defend their manufacturing industries from low cost...
Radio Free Acton: Bradley Birzer on Russell Kirk and the Genesis of American Conservatism (With Bonus Kirk Video)
This week on Radio Free Acton, we’re joined by Bradley J. Birzer, the Russell Amos Kirk Chair of American Studies and Professor of History at Hillsdale College, and the author of a new biography of the founding father of the American conservative movement, Russell Kirk. Birzer’s book,Russell Kirk: American Conservative, examines the life and thought of Kirk, the means he used to build a conservative Christian humanist movement, and examines Kirk’sinfluence on conservative leaders who followed. We at the Acton...
De-Carbonise and Destroy the Global Economy
Hoo boy…the circus ing to town. Paris is hosting the Conference of Parties (COP21) in December, that is, and the Big Top of big-government solutions to climate-change claims will, of course, include shareholder activists, many of them dressing up their progressive “sustainability” agendas with lots of churchy talk. These activists are closely linked in a broad religious and secular campaign that in fact reduces shareholder value in support of “social justice” and other such ideological abstractions. For example, the Interfaith...
What If There Were No Prices?
I’m something of a cheapskate (or as I prefer to think of myself, prudentially frugal) and so I take special pleasure in finding a good deal. I’m also, by nature, rather grateful and so I frequently thank God for helping me to find goods and services at bargain prices. But sometimes I remember to step back and be grateful for the larger system God has created that makes such exchanges possible: the price system. As I’ve said before, a “price...
Rubio Has A Point: Philosophy Majors Don’t Work In Philosophy
Correction: An earlier version of this post did not examine PayScale’s methodology. The three paragraphs that address it were added, and the text has been lightly edited in other places as a result. If the post now reads unevenly, that is why. Short version: I was a bit too hard on Mr. Bump due to my own lack of due diligence. Mea culpa. At last night’s fourth GOP debate on Fox Business, Florida Senator Marco Rubio lamented, “For the life...
Kuyper’s Impact on Chuck Colson
“I’ve done my best to popularize Kuyper, because that’s what’s so desperately needed in Western civilization today: a looking at all of life through God’s eyes.” –Chuck Colson Given the recent release of Abraham Kuyper’s 12-volume collection of works in public theology, it’s worth noting his influence on modern-day shapers of Christian thought and action. From Francis Schaeffer to Cornelius Van Til to Alvin Plantinga, Kuyper’s works have expanded the cultural imaginations of many. Another devotee was the late Chuck...
A Rare Glimpse at the Underground Church in China
Last weekend was the International Day of Prayer for the Persecuted Church, an annual day to put special emphasis on praying for the persecuted Church. Remembering the persecuted church around the globe, though, should be a continual effort for all Christians. We need to continually remind ourselves that our brothers and sisters arebeaten, jailed, or even killed for their faith. One group in particular that we need to remember to pray for is the underground church in China. In this...
Even the Federal Government Doesn’t Know If Their Regulations Are Effective
Of all the executive orders issued by President Obama, one of the most important is one most people never knew existed: Executive Order 13563 – Improving Regulation and Regulatory Review . In the order, the president requires federal agencies to perform a “retrospective analysis” of existing regulations to evaluate their efficiency and effectiveness: (a) To facilitate the periodic review of existing significant regulations, agencies shall consider how best to promote retrospective analysis of rules that may be outmoded, ineffective, insufficient,...
Ben Carson is Right: Minimum Wage Laws Hurt Black Workers
In last night’s GOP presidential candidate debate, Dr. Ben Carson was asked if he would raise the federal minimum wage. Carson said that he would not do so because the minimum wage hurts workers, especially those in the munity: People need to be educated on the minimum wage. Every time we raise the minimum wage, the number of jobless people increases. This is particularly a problem in the munity. Only 19.8 percent of black teenagers have a job. Or are...
Religion & Liberty: Kitchen Redemption
Brandon Chrostowski demonstrates a cooking technique at Edwins Early in October, I took a trip to Cleveland to learn about Edwins Leadership and Restaurant Institute and its founder, Brandon Chrostowski. Edwins is the “teaching hospital” of restaurants. It teaches people with zero hospitality experience the basics of restaurant business through a free six month course. The one requirement to get into the program? Jail time. Chrostowski was inspired to start Edwins after his own brush with the law and a...
Related Classification
Copyright 2023-2026 - www.mreligion.com All Rights Reserved