Nodejs Nginx 502 Bad Gateway - node.js

Question

I have set up my server on Digital Ocean and running it on port: 3000 using pm2. when I curl to my server in the do it responds correctly.
curl http://localhost:3000/
This is my nginx configuration.
server {
listen 80;
#root /var/www/html;
# Add index.php to the list if you are using PHP
#index index.html index.htm index.nginx-debian.html;
server_name api.skreem.co;
access_log /var/log/nginx/api.skreem.access.log;
error_log /var/log/nginx/api.skreem.error.log;
location / {
proxy_set_header X-Real-IP $remote_addr;
proxy_set_header X-Forwarded-For $proxy_add_x_forwarded_for;
proxy_set_header X-NginX-Proxy true;
proxy_pass http://localhost:3000;
proxy_set_header Host $http_host;
proxy_cache_bypass $http_upgrade;
proxy_redirect off;
}
}
I am getting logs on my Nginx access and error logs as follows
#access_log
106.51.111.247 - - [20/Mar/2020:09:27:34 +0000] "GET /favicon.ico HTTP/1.1" 502 584 "http://api.skreem.co/api/v2/" "Mozilla/5.0 (X11; Linux x86_64) AppleWebKit/537.36 (KHTML, like Gecko) Chrome/80.0.3987.132 Safari/
537.36"
#error_log
2020/03/20 09:27:34 [error] 1651#1651: *121 connect() failed (111: Connection refused) while connecting to upstream, client: 106.51.111.247, server: api.skreem.co, request: "GET /favicon.ico HTTP/1.1", upstream: "ht
tp://127.0.0.1:3000/favicon.ico", host: "api.skreem.co", referrer: "http://api.skreem.co/api/v2/"
On my Pm2 monitor I am not getting any Logs. I have rechecked the proxy_pass but still not able to get nginx to pass it on to the nodejs server.
Am getting
502 Bad Gateway error