Abstract: Since 2010, competency-based curriculum (CBC) reforms have increasingly influenced education systems worldwide, prompting alignment of university pedagogy to competency-oriented learning to strengthen graduate skills and employability. However, evidence suggests persistent gaps between CBC intentions and university teaching practices. This study adopted a narrative literature review design, synthesising empirical, conceptual, and policy-oriented studies published between 2010 and 2025. Literature was drawn from major academic databases and analysed thematically using key pillars of competency-based education to examine pedagogical interpretation, alignment, and implementation gaps in higher education. The review shows that although CBC reforms have reshaped curriculum frameworks and policy discourse, university pedagogy remains largely lecture-centred and examination-oriented. Limited adoption of learner-centred approaches, weak facilitative teaching practices, and constrained interdisciplinary learning restrict the development of transferable skills such as critical thinking, communication, and adaptability. Pedagogical misalignment contributes to persistent gaps between graduate capabilities and employability expectations, particularly in Sub-Saharan Africa, where institutional and contextual constraints are pronounced. The evidence demonstrates that aligning competency-based curriculum reforms with university pedagogy is central to improving graduate skills and employability outcomes. Effective alignment requires coordinated reforms that integrate curriculum design, pedagogy, assessment, and institutional support, which this review synthesises as evidence-informed pedagogical and institutional strategies. Without deliberate pedagogical transformation at the university level, the potential of CBC reforms to enhance graduate skills and employability remains limited.