Home
/
RELIGION & LIBERTY ONLINE
/
Noodles in Nigeria: When private business breeds economic development
Noodles in Nigeria: When private business breeds economic development
Mar 26, 2026 6:19 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
AU Online: ‘Building a Marketplace Theology’ series begins Jan. 22
When we think of markets, we may conjure up a picture of goods and services production, supply and demand economics, and freedom of exchange. This of course is an accurate depiction, but what if in addition to this, the marketplace is actually divinely inspired and can be utilized to fulfill God’s mission? In the ing AU Online four-part lecture series, Building a Marketplace Theology: From Conception to Execution of an Evangelistic Marketplace Practicum, serial entrepreneur David Doty will explore this...
Dick DeVos on Michigan’s New Right-to-Work Law
The Heritage Foundation recently interviewed Michigan businessman and entrepreneur Dick DeVos, a former candidate for governor, about how Michigan was able to pass their Right-to-Work law and what lessons conservatives can take away from the victory as they make the case for freedom. ...
Do Plants and Animals Have Civil Rights?
Earlier this month I attended the First Kuyper Seminar, “Economics, Christianity & The Crisis: Towards a New Architectonic Critique,” in Amsterdam. One of the papers presented was from Jan Jorrit Hasselaar, who discussed the inclusion of non-human entities into democratic deliberation in his talk, “Sustainable Development as a Social Question.” I got the impression (this is my analogy, not Hasselaar’s) that there was some need for a kind of tribune (for plants instead of plebeians), who would speak up for...
Amity Shlaes on ‘The Good Rich’ and the Folly of Philanthropy
In a new book, The Good Rich and What They Cost Us, Robert Dalzell Jr. aims to address “a great paradox at the core of the American Dream: a passionate belief in the principles of bined with an equally passionate celebration of wealth.” In a review for the Wall Street Journal, Amity Shlaes notes that although the book provides an in-depth look at the history of American philanthropy, the author’s own personal prescriptions lend too high a trust to government...
MLK Day Recommendations
While The civil rights movement was led by Christians, it is easy to forget how many believers—particularly in the South—did not support the efforts of Dr. Martin Luther King, Jr. On this day set aside to honor the civil rights leader we should read his best work, “Letter from Birmingham Jail”, and reflect on how his words are applicable to us today. For many of us who were born after that era, our knowledge of Dr. King begins with his...
We Should Affirm All Callings—Even Pastoral Ones
The winter issue of Leadership Journal is on vocation and callings. In the lead editorial, managing editor Drew Dyck reminds us that while it’s important to affirm the calling of lawyers, journalists, and plumbers, we need to remember that being a pastor is a calling too: I applaud this move toward a more holistic understanding of vocation. I’ve seen numerous books on the topic published in the past few years. Conferences are springing up. What’s most heartening is to see...
Film Review: Don’t Believe in ‘Promised Land’
Environmental issues have increasingly e polarized. No sooner has a new technology been announced than some outspoken individual climbs athwart it to cry, “Stop!” in the name of Mother Earth. To some extent, this is desirable – wise stewardship of our shared environment and the resources it provides not only benefits the planet but its inhabitants large and small. When prejudices overwhelm wisdom, however, well-intentioned but wrongheaded projects such as Promised Land result. The latest cinematic effort by screenwriters-actors Matt...
AU Online begins ‘Building a Marketplace Theology’ Webinar
AU Online’s four part series, Building a Marketplace Theology: From Conception to Execution of an Evangelistic Marketplace Practicum, begins tomorrow, January 22. Enrollment is now open. Dave Doty, author of Eden’s Bridge, will be speaking on four key issues related to his book and experience. Doty spoke to PovertyCure about the book and the issues it raises. My aim is to let marketplace Christians know that their vocational calling in the marketplace is ordained of God and that they have...
Lance Armstrong’s Shame
It seems yet again (and again) that we find ourselves scratching our heads about the lives of well-known athletes asking the question, “what happened?” Lance Armstrong has managed to anger people all over the world by his confession on Oprah Winfrey’s television network that he participated in a culture of deception using an host of performance enhancing drugs while winning seven Tour de France titles then followed that by several years of passionate denials. Armstrong admitted that he likely would...
Audio: Samuel Gregg on Secularism, Religion and ‘Becoming Europe’
Acton Institute Research Director Samuel Gregg was recently featured on three different radio shows. He discussed ing Europe as well as plications resulting from a growing religious diversity in Europe. Gregg was the featured on KSGF Mornings with Nick Reed as the author of the week, discussing ing Europe. Listen to the full interview here: [audio: He also discussed ing Europeon the Bob Dutko Show.Listen here: [audio: Al Kresta interviewed Gregg on Kresta in the Afternoon, in order to discuss...
Related Classification
Copyright 2023-2026 - www.mreligion.com All Rights Reserved