Home
/
RELIGION & LIBERTY ONLINE
/
Noodles in Nigeria: When private business breeds economic development
Noodles in Nigeria: When private business breeds economic development
Apr 15, 2026 4:52 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
Antichrist Superman: the superhero and the suffering servant
A host of Christian and mentators have trumpeted the similarities between Superman and Jesus Christ in light of the ing movie, Superman Returns. Many Christians embraced the Superman hero when a trailer for the new movie was released using the words of Superman’s father Jor-El, voiced by Marlon Brando: “Even though you’ve been raised as a human being you’re not one of them. They can be a great people, Kal-El. They wish to be. They only lack the light to...
Journal of Markets & Morality, volume 9, issue 1
The newest edition of the Journal of Markets & Morality is now available online to subscribers (the print version should be along shortly). The newest issue features a “symposium” in which several authors discuss the “Dynamics of Faith-Based Policy Initiatives” (part 1, part 2, part 3, part 4). The editorial for this issue is available to the general, non-subscribing, public and can be read online. “The Economics of Information Control” examines the rising demand for free academic scholarship and literature,...
Google Books: ‘authors and publishers deserve to be rewarded’
This from the official Google blog: “We’ve always recognized the importance of copyright, because we believe that authors and publishers deserve to be rewarded for their creative endeavors. And we specifically designed Google Book Search to respect copyright law – never showing more than two or three snippets around a search term without the publisher’s prior permission, which they can give through our Partner Program.” ...
The bible and natural law
David VanDrunen’s new monograph, A Biblical Case for Natural Law, is a must read for Christians who are perplexed about the biblical standing of natural law. It makes a biblical case for the existence and practical importance of natural law. Through his examination of the redemptive-historical context of natural law, professor VanDrunen is helping to shift debate away from the badly caricatured doctrine of sola scriptura toward a fuller understanding of the biblical theology underlying natural law. As Protestants rediscover...
Supreme Court update
The Supreme Court is in the midst of its busy season. Important decisions recently handed down include the death-penalty case, Kansas v. Marsh, and the campaign finance case, Randall v. Sorrell. Jonathan Adler offers an interesting analysis of the decision in a pair of cases, Rapanos v. United States and Carabell v. United States, which involved the the scope of the federal government’s regulatory jurisdiction over wetlands. Given the Court’s ambiguous record of protecting private property rights (see Kelo), Adler’s...
Book Review: The Scandal Of The Evangelical Conscience
Ron Sider, The Scandal Of The Evangelical Conscience: Why Are Christians Living Just Like The Rest Of The World? (Grand Rapids: Baker Books, 2005), 144 pp. “Summing Up Sider’s Legacy” Ron Sider’s recent book, The Scandal of the Evangelical Conscience, is a noteworthy achievement. One the one hand, it represents an plete shift away from left-leaning government-oriented solutions to social and economic problems that characterize the first edition of his popular Rich Christians in an Age of Hunger. This movement...
Use GoodSearch, support the Acton Institute
GoodSearch is a Yahoo!-powered search engine that allows you to designate a recipient charity of your choice. Once you pick a charity, each time you use GoodSearch that group will receive one cent. GoodSearch was founded by a brother and sister who lost their mother to cancer and wanted to find an easy way for people to support their favorite causes. The Acton Institute is now an option and can be designated as your GoodSearch recipient. Simply type in “Acton...
Let Us spray: fighting malaria
An article in today’s New York Times, “Push for New Tactics as War on Malaria Falters,” coincides nicely with Acton’s newest ad campaign (see the back cover of the July 1 issue of World). The article attacks government mismanagement of allocated funds in the global fight against malaria. Celia Dugger, the author, writes: Only 1 percent of the [United States Agency for International Development’s] 2004 malaria budget went for medicines, 1 percent for insecticides and 6 percent for mosquito nets....
Brunner v. Barth
Related to Stephen’s last post, the result of this Googlefight speaks for itself: Emil Brunner versus Karl Barth. By the way, Wipf and Stock Publishers have reprinted the classic exchange of the Barth/Brunner debate, Natural Theology: Comprising “Nature and Grace” by Professor Dr. Emil Brunner and the Reply “No!” by Dr. Karl Barth. ...
Protestants and natural law, part I
So, why don’t Protestants like Natural Law? The short answer is: there isn’t a short answer. So starting now, and continuing for who knows how long, I plan to tell the story of the Protestant struggle over natural law, plete rejection by Karl Barth in the 1930s to the recent hint of renewed interest among Protestant intellectuals. My view is that natural law is a forgotten legacy of the Reformation — one that contemporary Protestants desperately need to rediscover. Along...
Related Classification
Copyright 2023-2026 - www.mreligion.com All Rights Reserved