Patch the nips with drywall compound; you can get a small container most places, and it is cheap.
Is there any texture? Should be. If not, use some aerosol spray texture. I like the Homax brand latex version; the nozzles work well and if you don't like what you get, scrape it off and try again. They also have a fast dry solvent type but it is a mess to work with. Cover everything with thin plastic; texturing is messy!
Then prime and paint. In a bathroom I would use Zinsser's Cover Stain (oil) and then paint with an oil enamel in semi-gloss sheen. Add some mildewcide to the paint. All of these items are available at Home Depot in this area.