Performance in school examinations has remained one of the reliable indices of the quality of education in many countries. For over two decades in Nigeria, students' performance in most subjects on the school curriculum including Literature-in-English has been persistently declining. A number of explanations are offered for this unsatisfactory situation. Many students experience frustration in their efforts to study Literature due to poor proficiency in the English language as well as non-facilitative methods and strategies adopted by teachers. Studies on the teaching of Literature further revealed that the focus of research was on such issues as methods, strategies and problems of teaching Literature in the secondary school. Only a few studies centered on text possession while little or none seem available on whether the teacher's methods and pedagogical practices were sensitive to students' extent of text possession. The study, therefore, investigated the extent of prescribed text possession by Literature-in-English students as well as whether the level of text possession by students influenced the teacher's methods and pedagogical practices. The descriptive survey research design was adopted in the study. Participants in the study comprised 100 Senior Secondary School II teachers of Literature-in-English and their 500 students in Ibadan metropolis. The participants were selected using purposive random sampling techniques. Three instruments used for the collection of data were: Questionnaire on Students' Possession of Prescribed Prose Literature Texts (r = 0.76), Questionnaire on Teachers' Organization of the Teaching of Literature (r = 0.75) and Classroom Observation Schedule for the Teaching of Prose Literature (r = 0.84). Four research questions were answered. Data analysis involved the use of frequency counts and percentages. Results revealed that a majority of the students do not possess the prescribed Literature texts (60.2% and 65.5%) for African and non- African novels respectively. Teachers generally adopted the read aloud and explain method of teaching Literature (61%).This is followed by the teacher assigning chapters to be read from home and discussed in class (37%). There is also the use of the lecture method (27.18%). Results further indicate that when a majority or all the students possessed the prescribed texts, teachers used read aloud and explain method (43.1%) as well as the lecture method (25.8%) and discussion method (1.8%). Similarly, when either a few or none of the students possessed the prescribed texts, teachers used read aloud and explain methods (36.4%) followed by the lecture method (28%). It was concluded that lack of text possession by the students and teachers' inflexible use of methods in spite of varying contexts of teaching and learning are strong pointers to students declining performance in prose Literature. Government and parents should take realistic measures to provide prescribed texts for students while teachers should be encouraged to use innovative methods that are consistent with the teaching and learning contexts.