Concrete is generally a very stable material, it can last thousands of years if properly designed and placed. I cannot tell from the photos what is going on. Soft, powdery concrete can occur if the mix is bad, the concrete is not vibrated in place during installation, or acidic water is migrating through the concrete. As noted by others, if the mix is bad, you cannot correct the problem by painting over the concrete.
You may need to hire a firm to take a few core samples and have them analyzed. Your problem may be efflorescence, which is a buildup of powdery material on the interior surface of the concrete. This is caused by water migrating through the concrete, which dissolves salts. As the water evaporates on the inside, the salts are deposited, and you get a powdery material. Efflorescence is not usually a major structural problem, more of a cosmetic issue, and can be stopped if you take care of the external water. You may need a local expert to look at the wall to determine if you have a bad mix or just efflorescence.