At present, a great interest in establishing novel associations between higher plants and a variety of N₂-fixing microorganisms has entered the scientific scene arising from the prospects and the possibilities of their potentially application. . In this paper, data presented is obtained during the co-cultivation of local cyanobacteria strains prepared as a biofertilizer (cyanobacterial soil based inoculum, CSBI) for wheat cultivated in sandy soil. Results revealed that cyanobacteria inoculation (CSBI) exhibited an economical view that it can save about 25 % of the mineral nitrogen amounts required for wheat crop production. The trend was noticed when CSBI inoculation was applied at the rate of 3 kg fed^-1 along with 90 kg N fed^-1, which recorded   a grain yield not significantly different from that obtained by 120 kg N fed^-1 the full recommended nitrogen dose.  Cyanobacteria inoculated to wheat crop have also improved the fertilizer nitrogen use efficiency and the fertilizer nitrogen utilization percentage. As well as CSBI, generally enhanced the sandy soil biological activity in terms of increasing its total cyanobacteria count, total fungi count, Actinomycetes count total bacterial count, CO₂ evolution, dehydrogenase activity as index for the soil fertility and nitrogenase activity. These increases were in comparison with uninoculated plants (control treatment).