Here is what I have in ls -al /etc/nginx:
total 52
drwxr-xr-x.  4 root root 4096 Jul 28 04:16 .
drwxr-xr-x. 78 root root 8192 Jul 28 03:37 ..
drwxr-xr-x.  2 root root   26 Jul 28 03:55 conf.d
drwxr-xr-x.  2 root root    6 May 10 09:21 default.d
-rw-r--r--.  1 root root 1034 May 10 09:21 fastcgi.conf
-rw-r--r--.  1 root root  964 May 10 09:21 fastcgi_params
-rw-r--r--.  1 root root 2837 May 10 09:21 koi-utf
-rw-r--r--.  1 root root 2223 May 10 09:21 koi-win
-rw-r--r--.  1 root root 3957 May 10 09:21 mime.types
-rw-r--r--.  1 root root 1033 Jul 28 03:43 nginx.conf
-rw-r--r--.  1 root root  596 May 10 09:21 scgi_params
-rw-r--r--.  1 root root  623 May 10 09:21 uwsgi_params
-rw-r--r--.  1 root root 3610 May 10 09:21 win-utf
This is what I see /var/log/nginx/error.log after sudo service nginx start:
[emerg] 20360#0: open() "/etc/nginx/conf.d/foo.conf" failed
(13: Permission denied) in /etc/nginx/nginx.conf:33
This is what I have in ls -al /etc/nginx/conf.d/:
$ ls -al /etc/nginx/conf.d/
total 8
drwxr-xr-x. 2 root root   26 Jul 28 03:55 .
drwxr-xr-x. 4 root root 4096 Jul 28 04:16 ..
-rw-r--r--. 1 root root  230 Jul 28 03:50 foo.conf
What's wrong?
ls -lZshow? Trysetenforce 0and see if it works.setenforce 0helped. Please, submit it as an answer, I'll accept it