It sounds as though the default 'All' label used by faceted navigation simply needs to be renamed to 'National' here.
Default output when selecting a region would render similar to:
Region > All > North
The 'All' link text is clickable, and removes the North constraint (and the corresponding URL parameter).
Region > National
seems like default logic being processed, but adding it to the UI is the intent:
Region:
[x] National
[ ] North
[ ] South
[ ] East
[ ] West
If a user checks any item other than 'National', the 'National' checkbox would need to be deselected.
Region:
[ ] National
[x] North
[ ] South
[x] East
[ ] West
Conversely, if a user has selected one or more non-National categories, these could need deselecting when selecting 'National' again (depending on the desired logic).
An alternative approach may be to use query gscopes (new in v15.8+) combined with gscope facets:
# query-gscopes.cfg
1 region:north
2 region:south
3 region:east
4 region:west
# National region - anything that's doesn't have a region defined as north, south, east or west
5 ![region:north region:south region:east region:west]
https://docs.funnelback.com/15.8/more/extra/query-gscopes.cfg.html