I am trying to add the ads.txt to my website and trying to implement it with the command below however ->

I don't use nginx but I'm pretty sure that the '=' is your problem. Change your config to:

location /ads.txt {
   allow all;
   log_not_found off;
   access_log off;
}

See: https://bitlaunch.io/blog/how-to-configure-nginx/

While this syntax may (?) be correct, my advice does not guarantee that your site will suddenly start working.

-- sw

Hello, thank you for your suggestion. I tried it but it still provided the same outcome.