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The Nation was formed following the death of Lore, who had taken advantage of a ship of drones severed from the Collective. Its leader, or "Primary", was Hugh, a Borg who had been found by the crew of the USS Enterprise-D, and who was the first to discover his individuality and spread it to the rest of his ship.
The Independent Nation of Borg based itself in the Delta Quadrant, and endeavored to free other Borg from the Collective. Circa 2376, they attempted to recruit Seven of Nine to serve as their ambassador to the Federation. Though Seven declined, she did agree to speak on their behalf when USS Voyager reached Earth. (VOY short story: "Seventh Heaven")