I followed this example to set up my wordpress instance.

https://www.digitalocean.com/community/tutorials/how-to-install-wordpress-with-nginx-on-ubuntu-14-04

I am unable to install/ update plugins through the WordPress Admin UI. It keeps asking me for the FTP username/ password, and even after I enter those information, the files are still not installed.

I can upload files through the Media however, so it doesn’t seem like a file permissions issues to me.

Does anyone know what are some possible solutions I can try?

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This question was answered by @UKn0Me:

After running chown, you’ll probably need to add define('FS_METHOD', 'direct'); to wp-config.php to force it to stop using FTP.

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Use this code , wordpress asking for ftp details because wordpress doesn’t have permission to write in your server.
use these two commands in terminal.

$sudo a2enmod rewrite
$sudo chown -R www-data /var/www

video guide https://www.youtube.com/watch?v=RGGWVUIvhnk

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