On 26 June 1960, Egal was Prime minister of the newly independent State of Somaliland, which merged five days later with the former Trust Territory of Somalia to form the Somali Republic on July 1, 1960.

[5] The ascension Muhammad Haji Ibrahim Egal to the role of Prime Minister was reportedly in large part financed by thousands of dollars in covert support to him and other pro-Western elements in the ruling Somali Youth League party by the American Central Intelligence Agency.

[7] The SRC subsequently renamed the country the Somali Democratic Republic,[8][9] arrested members of the former civilian government, banned political parties,[10] dissolved the parliament and the Supreme Court, and suspended the constitution.

Throughout his term as president of the Republic of Somaliland, Egal's dedication to the secessionist cause was doubted and challenged by hardliners, particularly within the Somali National Movement (SNM), who believed that he still ultimately hoped to reconcile with other political actors in the rest of Somalia.

In August 2001, Egal survived by one vote a motion tabled by several regional MPs charging him of half-heartedly pursuing separatism.