Well if it started out as "hole looking" and has gotten worse, it sounds like scaly face mites (called several different names but is a mite that burrows into the nares and feet). There are several things that people "try" to use to treat them over the counter but they do not work. The only way to cure it is to go to a vet and get medication (an actual avian vet).

This is highly contagious and WILL spread to other birds that you already have if not treated soon (if it hasn't already spread).

After saying that, I am not a vet and even thought my guess would be the mites there may be another cause. Either way it needs treated by a true avian vet!

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