We stayed a week at the Three Arms while flat hunting in Lagos and I was pleasantly surprised by the quality of this hotel given the modest price tag (relative to other Lagos hotels).
The rooms are well decorated with warm tones and spacious enough for two to stay comfortably for more than a couple days. The rooms are kept clean and fairly well serviced. The staff are also quite friendly and helpful, which is a touch often missing from other hotels in Nigeria. Finally, if you're doing business on the Islands, the location is fairly central and it's easy to get onto the mainland as well.
All in all, Three Arms is a great find and worth the money for those in Lagos on business.
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