This paper examines the origin, evolution and emergence of folklore (oral literature) as an academic discipline in Africa and its place in the humanities. It draws attention to the richness of indigenous knowledge contained in oral literature and demonstrates how the ethical and moral gap in the existing educational system can be filled by the moral precepts embedded in oral literature. The paper argues that African oral literature has not received the attention it deserves among other disciplines of the humanities in institutions of higher learning in Africa. It concludes that any discussion on African literature will be incomplete, and indeed irrelevant, if it does not equally give adequate attention to the oral literature of the African people. As a result, a new curriculum and pedagogy must be designed to give pride of place to folklore and oral literature as the best repository of our cultural norms and values especially in African tertiary institutions.